BENEFITS FROM USING PRODUCT LIFE CYCLE COSTING

Some of the following benefits of using product life cycle costing are:

• it results in earlier actions to generate revenue or to lower cost than otherwise might be considered
• better decision should follow from a more accurate and realistc assessment of revenues and costs, at least within a particura life cycle stage
• promote long-term rewards in contrast to short-term profitability rewarding
• provides an overall framework for considering total incremental costs over the life span of a product.