Determine the benefit of product life cycle costing, Managerial Accounting

Benefit of product life cycle costing

The benefits of product life cycle costing are summarized as follows:

1) The product life cycle costing results in earlier actions to generate revenue or to lower cost than otherwise might be considered. There are a number of factors that need to the managed in order to maximize return on a product.

2) Better decision should follow from a more accurate and realistic assessment of revenues and costs at least within a particular life cycle stage.

3) Product life cycle thinking can promote long-term rewarding in contrast to short-term profitability rewarding.

4) It provides an overall framework for considering total incremental costs over the entire life span of a product which in turn facilitates analysis of the where cost over the entire life span of a product which in turn facilitates analysis of parts of the whole where cost effectiveness might be improved.

 

Posted Date: 7/8/2013 1:22:03 AM | Location : United States







Related Discussions:- Determine the benefit of product life cycle costing, Assignment Help, Ask Question on Determine the benefit of product life cycle costing, Get Answer, Expert's Help, Determine the benefit of product life cycle costing Discussions

Write discussion on Determine the benefit of product life cycle costing
Your posts are moderated
Related Questions
M/s ABC has an existing sales of Rs.50 lakhs and permits a credit period of 30 days to its customers.  The firm cost of capital is 10% and the ratio of variable cost to sales is 85

Input or exogenous variables These are variables of two types: 1) Controlled variables: These are variables that can be controlled by management. By changing the input

Kinematic Pair: A pair is a joint of two elements which permits relative motion. The relative motion among the elements of links that built a pair is needed to be fully constrain

Implementing management accounting and control innovations are often problematic. Provide a brief commentary around the key factors necessary to give such innovations the best chan

Important steps of budgetary control There are certain steps which are essential for the successful implementation of a budgetary control system. They are as follows: 1) Or

1. In common, accounting period is the time period reflected by a series of financial statements.  2. In terms of taxation, it is twelve-month period a taxpayer uses to know


First Cut Analysis of Costs The allocation of costs and assets will produce a value chain that illustrates graphically the distribution of a firm's costs. It can prove reveali

Phases of product life cycle The life cycle of a product having of four phases viz., introduction growth maturity decline during introduction phase a product is launched into

how to journalize entry. purchased $150,000 of raw materials on account, terms of 2/20; n/30