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
Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

What is Sunk cost A cost has been incurred in the past or sunk in the past and is not relevant to the particular decision making, is a sunk cost. If it is decided to replac

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

How to solve a Time Series problem for a five year period

Identify the ways in which Total Productive Maintenance could be applied as part of a manufacturing organisation''s quality programme

Maximum change in marginal Profit or Cost Just as we did in studying the permissible ranges for changes in resources, we are also interested in studying the permissible ranges

HGT Company initialized the accounting period with the following beginning balances:          During the accounting period, the company purchased $60,000 of raw materials and ended

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 g

Conditions necessary in a control cycle There are four necessary conditions that must be satisfied before any system can be said to be controlled. Such are as follows: (1) O

Discretionary fixed costs and Semi variable costs Discretionary fixed costs are those which are incurred as a result of management discretion. These costs have two importan