Explain briefly about life cycle costing, Managerial Accounting

LIFE CYCLE COSTING

Introduction

Life cycle costing as its name implies costs the cost object i.e., product project etc. over its projected life. It is used to explain a system that tracks and accumulates the actual costs and revenues attributable to cost object from its inception to its abandonment. The profitability of any given cost object can thus be determined at the end of its economic life.

Life cycle costing is dissimilar to traditional cost accounting system which report cost object profitability on a calendar basis i.e. monthly quarterly and annually. In contrast life cycle costing includes tracing cost and revenues on product by product bases over several calendar periods. Costs and revenue can be examined by time period but the emphasis is on cost revenue accumulation over the entire life cycle of every product.

 

Posted Date: 7/8/2013 1:37:32 AM | Location : United States







Related Discussions:- Explain briefly about life cycle costing, Assignment Help, Ask Question on Explain briefly about life cycle costing, Get Answer, Expert's Help, Explain briefly about life cycle costing Discussions

Write discussion on Explain briefly about life cycle costing
Your posts are moderated
Related Questions
Explain the Objectives of management accounting? 1. Planning and policy formulation: the object of management accounting is to supply necessary data to the management for fo



Calculate Transfer Price - Management Control System? Question: Compute the Transfer Price for Product X and Y and the Standard Cost of Product Z as the intra company pricing r

Illustration of Graphic Analysis The four steps of cost-volume-profit analysis can be employed to graph and study any cost-volume relationship. Suppose that you have been aske

Explain Zero bases budgeting According to David humdinger According to David humdinger, ZBB is a management tool which provides a systematic method for evaluating all operation

Decision Making Process Decision making is the process of choosing among alternatives. There are 7 steps that should be followed as shown in figure below:   Figure:

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

Suggestion system  The suggestion system is as integral part of an established management system that aims at involving employees in kaizen. The number of worker s suggestion i

Std error of the slope (Sb) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. The standard error of ‘