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
What is the Responsibility of operating budget when the operating budget of a firm is constructed in terms of responsibility areas it is called the responsibility budget shows

The advantages and disadvantages of standard costing The benefits for controlling having a standard costing system in operation can be summed up as follows; Cautiously pl

The Search for Alternative Courses of Action The second stage of the decision-making model is a search for a range of possible courses of action (or strategies) that might enab

need help with a master budget and assumptions for project

Account analysis (Inspection of accounts) method: This method requires that departmental managers and the accountant inspect each item of expenditure within the accounts for s

Your company is considering investing in its own transport fleet. The presentposition is that carriage is contracted to an outside organization. The life of thetransport fleet woul

Significance of performance budgeting Performance budgeting will help the management of companies by introduction of management objective to improve performance. Further it wi

Laplace Criterion of Rationality This criterion holds that if decision makers do not know the probabilities of the various states of nature and have no reason to think otherwis

How to write introduction on strategy plan

Deposits from the public are one of the important sources of finance mainly for fine established big companies along with a vast capital base. The period of public deposits is rest