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
Question : (a) A company manufactures and sells two products A and B. Presently, it sells 600 units of A and 400 units of B at a price of £24 and £19 respectively. The unit

Accounting Method is the method by which income and expenses are accounted for taxation purposes. The Internal Revenue Service needs taxpayers to select an accounting method that p

Difference between budgetary control and standard costing Budgetary control The budgets are prepared for the concern as a whole. The budgets are fixed on the basis of p

Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h

EOQ mathematical model As costs of ordering and holding stock are equal at the EOQ point, we can build a simple mathematical model to solve the problem, as follows: (Q/ 2) X

Disadvantages of the cost accounting: 1. It is unnecessary: it is argued that maintenance of the cost records is not necessary and involves duplication of work. It is based o

State performance budgeting according to carter performance According to carter performance budgets use statement of mission goals and objectives to explain why the money is be


1. Explain Value Added Analysis along with the major factors included in Management Accounting Analysis. 2 Identify the several top management styles and define their implicatio