Page 15 - F5 Slides 2017-18
P. 15
Implications of lifecycle costing
• Pricing decisions can be based on total lifecycle costs
rather than simply the costs for the current period.
• Decision making - a timetable of life cycle costs helps show
what costs need to be recovered.
• Control - Lifecycle costing reinforces the importance of tight
control over locked-in costs, such as R&D.
• Performance reporting - Life cycle costing costs to products
over their entire life cycles, to aid comparison with product
revenues generated in later periods.
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