CIPS Defining Business Need (L4M2) Practice Test

The first stage in the Whole Life Costing (WLC) approach is planning. This initial stage is crucial as it sets the foundation for the entire WLC process. During the planning phase, it is essential to identify the objectives of the project, the stakeholders involved, and the potential costs associated with the life cycle of the product or service being evaluated.

Planning allows organizations to forecast the expenses and benefits over the entire life cycle, which enables informed decision-making. It involves gathering relevant data, assessing potential risks, and considering various financial models to ensure that the project aligns with the strategic goals of the organization. By thoroughly planning, businesses can maximize value and minimize costs, which is central to the principles of Whole Life Costing. This stage ensures that any subsequent actions in the implementation or evaluation phases are effective and directed towards achieving the identified objectives.

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