Question

stages of life cycle cost with definition

effects of life cycle costing

Answer 1

Life cycle: It is a method of analysis of cost and revenue that revolve around a product throughout the life of the product.

STAGES OF LIFE CYCLE:

1). MARKET RESEARCH:   It is depends upon what product customer wants, how much he will pay for the product and how much he will buy .

2). SPECIFICATION: It will tell about the specific things about the product like the product life span, Maintenance cost on it and how its work, what other things are there which make it different from the other products.

3).DESIGN: Proper design and blueprint of the product , whole process to make the product.

4).DEVELOPMENT: Testing of the product and meeting with the requirement of the product and do changes continuously make changes in the product until it meets with it.

5).TOOLING: It mean buying the necessary tools and equipment that are require for making of the product.

6).MANUFACTURING: Manufacturing of products from the initial stage to the requirement of laborers and workers an expenses which are require to make it into a product, afterwards selling , distribution of product etc.

7). DECOMMISSIONING: When products are completely manufactured the plant used the product must be sold.

EFFECTS OF LIFE CYCLE COSTING:

Basically it helps the companies to make them aware about their product in their life cycle. From the introduction stage to its growth and continue it till maturity and ends in the decline period.

It helps the company to make necessary changes in the product as required and make them ready to introduce another one.