LIFECYCLE COSTING - LIFECYCLECOSTING 1 MEANING LifeCycleCosting(LCC)alsocalledWholeLife ownership managemen

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1 LIFE CYCLE COSTING
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2 MEANING Life Cycle Costing (LCC) also called Whole Life  Costing is a technique to establish the total cost of  ownership. It is a method of costing that looks at a product’s  entire value chain from a cost perspective.  The results of an LCC analysis can be used to assist  management in the decision-making process where  there is a choice of options.
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3 Other types of costing generally look only at the  production process, whereas life-cycle costing  tracks and evaluates costing from the research and  development phase of a product’s life, through to  the decline and eventual conclusion of a product’s  life. Life-cycle costing focuses on reducing costs  throughout a product’s life.
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There are 4 major benefits of LCC analysis: evaluation of competing options in  purchasing;  improved awareness of total costs; 
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This note was uploaded on 07/29/2010 for the course ACCOUNTS 2332 taught by Professor Piyush during the Fall '10 term at Amity University.

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LIFECYCLE COSTING - LIFECYCLECOSTING 1 MEANING LifeCycleCosting(LCC)alsocalledWholeLife ownership managemen

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