Major purchases require an analysis of any associated one-time and recurring costs, a process called life-cycle costing. Learn the definition of life-cycle costing, types of expenses to consider, the 12 steps in the process, and the advantages and disadvantages of doing this type of analysis....
Life cycle costing, or whole-life costing, is the process of estimating how much money you will spend on an asset over the course of its useful life. Whole-life costing covers an asset’s costs from the time you purchase it to the time you get rid of it. Buying an asset is a cost...
Life cycle costing is mostly used for tangible assets. However, it is applicable to intangible assets too. For example, a business patent. While the costs may be trickier to add up in the case of intangible assets, it is possible to calculate the value of life cycle costing. For example,...
Table 13.2.Life-cycle costing example (in US$) Empty CellEmpty CellMotor AMotor B Item descriptionNotesPer yearTotalPer yearTotal Annual maintenance costs1002,0001002,000 Operating costs @US$0.10/kWh(1)1,86437,2801,72734,540 Replacement costs(1,2)56.25112549.65993 ...
Ken Garrett explains target costing and life-cycle costing, and gives examples as to how and when you would use these costing techniques Target costing and life-cycle costing can be regarded as relatively modern advances in management accounting, so it is worth first looking...
Life cycle costing (LCC) is applied as an assessment tool to estimate the entire cost of typically large-scale assets, for example, buildings and infrastructure objects with a considerably long serviceable life. LCC needs to consider and accumulate all types of cost, and since these occur at ...
了解了生命周期有哪些成本后,企业能更好的在每个阶段制定相应的成本控制要点,分析其可优化点,通过全过程的成本管理来达到最终降低成本的目的。 参考资料: [1].ACCA. Performance Management (PM) .Technical articles Target costing and lifecycle costing.
Life Cycle Costing (LCC) is a technique developed for identifying and quantifying all costs, initial and ongoing, associated with a project or installation over a given period. The full cost of a project includes projections of future interest and inflation rates, maintenance intervals and costs, ...
不要害怕失败,因为失败是成功的垫脚石。2024年acca考试时间已经公布,请报名成功同学提前制定备考计划,巩固基础知识点,认真备考。今天为大家整理了PM科目Life-cycle costing(生命周期成本计算)相关知识点,具体内容如下。 【内容导航】 Life-cycle costing-生命周期成本计算 ...
The four types of costs that are found in the Life Cycle Costing concept are: A. operating/maintenance, discard, direct, and variable B. indirect, auxiliary, development, and production C. operating/maintenance, development, and production D. indirect, auxiliary, indirect, and direct 相关知识...