Product Life Cycle Costing

Publisher: Trans Tech Publications

E-ISSN: 1662-7482|2015|816|547-554

ISSN: 1660-9336

Source: Applied Mechanics and Materials, Vol.2015, Iss.816, 2015-12, pp. : 547-554

Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.

Previous Menu Next

Abstract

Successful performance of a company and its ability to handle growing competition is dependent on its capacity of implementing new technologies and making use of new methods of management. This report aims at cost management tool that enables controlling of costs through the whole life-cycle. Life Cycle Costing allows us to look at the start-up costs and the costs associated with the cessation of production, after-sales services costs and other expenses not taken into account in planned or operational calculation, see them as one unit and thereby evaluate the effectiveness of the product. Before establishing a production, calculation of the life-cycle costs is based on various factors which can be found in this article as well as the division of costs within the scope of calculation. It contains an example of calculation and accurate illustrations of process-based models of life-cycle costing from different points of view brought by various authors dealing with this topic, the usage of costing and the relationship with other calculations that are component parts of a company’s strategic cost management.