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Product life cycle costing
It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data to make clear the economic impact of alternatives chosen in the design engineering phase etc. it is also considered as a way to enhance the control of manufacturing costs. The thrust of product life cycle costing is on the distribution of costs among it is important to track and measure costing is on the distribution of costs among categories changes over the life of the product as dose the potential profitability of a product. Hence it is significant to track and measure costs during each stage of a product's life cycle.
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Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the
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Absorption cost Absorption, or full cost systems, transfer the full cost of the supplying department to the receiving department. Where a profit is to be allowed to the supplyi
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