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Benefit of product life cycle costing
The benefits of product life cycle costing are summarized as follows:
1) The product life cycle costing results in earlier actions to generate revenue or to lower cost than otherwise might be considered. There are a number of factors that need to the managed in order to maximize return on a product.
2) Better decision should follow from a more accurate and realistic assessment of revenues and costs at least within a particular life cycle stage.
3) Product life cycle thinking can promote long-term rewarding in contrast to short-term profitability rewarding.
4) It provides an overall framework for considering total incremental costs over the entire life span of a product which in turn facilitates analysis of the where cost over the entire life span of a product which in turn facilitates analysis of parts of the whole where cost effectiveness might be improved.
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