Product life cycle costing has grown in importance as this methodology/approach is able to provide a long term picture of product life in terms of:
- profitability;
- feedback on the effectiveness of life cycle planning and
- cost data to clarify the economic impact of alternatives chosen in the design, engineering phase,etc.
As such, many cost accountants consider it as a way to enhance control of the manufacturing costs at each stage of a product life’s cycle.
Life cycle costing enable costs to be more visible it ensure costs for each individual product can be reportd and compared with produc revenues generated in later periods.
The main characteristics of product life cycle costing comprises: Continue reading Product Life Cycle Costing-Its Importance, Characteristics,Benefits and Stages
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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