Product Life Cycle Costing Concept
Product life costing the cost of an asset or product is
determined for a whole period i.e. product life cycle. Therefore product life
costing is also termed as whole life costing.
Product
life Costing objective
Product life costing is
basically the depth analyses of the costs of product at different stages of its
life. These cost analyses helps management to decide the pricing, profitability
of the product.
Product
life costing suitability
1. Product
Product life costing is
suitable for a product which is introduced, sold for several years and
eventually left from the market.
2. Asset
Product life cycling is
suitable for a construction of an asset, which cost changes with the period.
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