The beginning of the curve marks the introduction stage; the slope indicates growth stage; top of the curve signifies maturity; and the graph ends in the decline stage.
Meaning, Characteristics and Everything Else Article shared by: In this article we will discuss about Life Cycle Costing: Meaning of Life Cycle Costing 2. Characteristics of Life Cycle Costing 3. Meaning of Life Cycle Costing: Life cycle costing is a system that tracks and accumulates the actual costs and revenues attributable to cost object from its invention to its abandonment.
Life cycle costing involves tracing cost and revenues on a product by product base over several calendar periods. Life Cycle Cost LCC of an item represents the total cost of its ownership, and includes all the cots that will be incurred during the life of the item to acquire it, operate it, support it and finally dispose it.
Life Cycle Costing adds all the costs over their life period and enables an evaluation on a common basis for the specified period usually discounted costs are used.
This enables decisions on acquisition, maintenance, refurbishment or disposal to be made in the light of full cost implications. In essence, Life Cycle Costing is a means of estimating all the costs involved in procuring, operating, maintaining and ultimately disposing a product throughout its life.
Life cycle costing is different from traditional cost accounting system which reports cost object profitability on a calendar basis i. Thus, product life cycle costing is an approach used to provide a long-term picture of product line profitability, feedback on the effectiveness of the life cycle planning and cost data to clarify the economic impact on alternative chosen in the design, engineering phase etc.
It is also considered as a way to enhance the control of manufacturing costs. Characteristics of Life Cycle Costing: Product life cycle costing involves tracing of costs and revenues of a product over several calendar periods throughout its life cycle. Product life cycle costing traces research and design and development costs and total magnitude of these costs for each individual product and compared with product revenue.
Each phase of the product life-cycle poses different threats and opportunities that may require different strategic actions. Product life cycle may be extended by finding new uses or users or by increasing the consumption of the present users.
Stages of Product Life Cycle Costing: Following are the main stages of Product Life Cycle: It will establish what product the customer wants, how much he is prepared to pay for it and how much he will buy. It will give details such as required life, maximum permissible maintenance costs, manufacturing costs, required delivery date, expected performance of the product.
Proper drawings and process schedules are to be defined. From the drawings a small quantity of the product will be manufactured. These prototypes will be used to develop the product. Testing and changing to meet requirements after the initial run. This period of testing and changing is development.The National Institute of Standards and Technology (NIST) developed the Building Life Cycle Cost (BLCC) Programs to provide computational support for the analysis of capital investments in buildings.
Software life cycle models describe phases of the software cycle and the order in which those phases are executed. Each phase produces deliverables required by the next phase in the life cycle. Most alert and thoughtful senior marketing executives are by now familiar with the concept of the product life cycle.
Even a handful of uniquely cosmopolitan and up-to-date corporate presidents. Author: Bill Kobren. T he Life Cycle Logistics career field comprises professionals responsible for planning, development, implementation and execution of effective and affordable weapons, materiel and information systems product support strategies.
Life Cycle Logistics encompasses both acquisition and sustainment activities spanning a weapon system’s life cycle.
Joshi, Product Input-Output Life-Cycle Assessment 97 RESEARCH AND ANALYSIS y approximate paper cups by the industry sector “ Paperboard Containers and Boxes” and plastic cups by the industry sector “ Plastic Materials. § Life-cycle management and product support (a) Guidance on Life-Cycle Management.-The Secretary of Defense shall issue and maintain comprehensive guidance on life-cycle management and the development and implementation of product support strategies for major weapon vilakamelia.com guidance issued pursuant to this subsection shall-(1) maximize competition and make the best . Before a product can embark on its journey through the four product life cycle stages, it has to be vilakamelia.com product development is typically a huge part of any manufacturing process. Most organizations realize that all products have a limited lifespan, and so new products need to be developed to replace them and keep the company in business.
“The stages through which a product develops over time is called Product Life Cycle (PLC)”. OR “It is the period of time over which an item is developed, brought .
Since then, LS&Co. has made tremendous progress addressing areas within its control, leading to more than one billion liters of water saved to date through the Levi’s.