Cost Life Cycle PDF

Preview

Summary

What is life cycle costing, and why is it used?  Cost life cycle is the step by step process in producing a product or service. From researching, planning, implementing, manufacturing, promotions, and distribution. It is also use to determine how to minimize the cost in producing the product. Do co...

Description

1.

What is life cycle costing, and why is it used? 

2.

Cost life cycle is the step by step process in producing a product or service. From researching, planning, implementing, manufacturing, promotions, and distribution. It is also use to determine how to minimize the cost in producing the product. Do cost management practices change over the product’s sales life cycle? Explain how.



3.

Yes, because the sales’ life cycle is a phase of the product’s life in the market. The was first introduce in the market, there is a growth in sales, it matures and the sales decline, and finally withdrew in the market. For what types of firms is life-cycle costing most appropriate and why?



Life-cycle costing is the most appropriate on businesses with long-term span of planning that focuses on the servicing costs, firms that has upstream and downstream costs. An example that I think is in the gaming industry, because games took several years to be completed before the public has to play it.

4. Explain the difference in intended application between sales life-cycle analysis and life-cycle costing. 

Sales life cycle begins when the product or service is introduced to the market and it goes on until its withdrawal. On the other hand, life-cycle costing involves the entire process of creating the item until it is placed in the market.

5. What are the different methods of product engineering used in product design and life-cycle costing?    

Basic Engineering Prototyping Templating Concurrent Engineering...