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RSM322 TopicF - 1 2 Agenda Introduction to Cost Planning...

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3/2/2011 1 Topic F Cost Planning for the Product or Service Life Cycle While you are waiting, please take out and display your name cards 1 Agenda Introduction to Cost Planning Target Costing Theory of Constraints Life Cycle Costing Strategic Pricing 2 Introduction to Cost Planning Cost planning involves estimating total costs of a product or service over its entire life cycle Total costs involve manufacturing costs as well as internal or external value chain costs A product or service’s life cycle can be analyzed in two different ways: Cost life cycle Sales life cycle 3 Cost Life Cycle The cost life cycle is the sequence of activities that begin with the initial research and development of the product or service and ends with the related customer service 4 R&D Design Manufacturing Marketing & Distribution Customer Service Target Costing Theory of Constraints Life Cycle Costing Strategic Pricing
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3/2/2011 2 Sales Life Cycle
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