ACCA MA · Chapter 9 · Question 7 of 11
Which of the following best describes life-cycle costing?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Recording and monitoring all the costs of a product over its whole life, from design and development through to withdrawal from the market
Explanation
Life-cycle costing tracks costs over a product's entire life, including pre-production costs such as research and design, and end-of-life costs such as decommissioning. The other options describe traditional annual costing, target costing and activity based costing.
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