What is included in the life cycle costs?

The correct answer encompasses all costs associated with the system throughout its entire life cycle, from the initial research and development stages all the way to disposal. This comprehensive view includes not only the costs involved in various phases such as design, production, and testing, but also operational and maintenance expenses incurred during the system's active use. Furthermore, it takes into consideration the end-of-life costs associated with disposal or recycling.

Understanding life cycle costs is crucial in systems acquisition management because it allows organizations to make informed financial decisions, evaluate the total cost of ownership, and ensure that budgetary planning covers all aspects of the system’s existence. By recognizing these costs fully, organizations can better assess the value and sustainability of a system over time.