In Managerial Accounting, explain what are the benefits of using product life cycle costing methodology or approach? (Part 4 of 4)

January 25th, 2010 Comments off
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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.

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Financial Accounting

 
 

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