Page 9 - MCS August Day 2 Tasks
P. 9
ADVANCED MANAGEMENT ACCOUNTING (P2) ‐ PRACTICE TASKS
TASK 3 – LIFE‐CYCLE COSTING AND PRODUCT PRICING
Trigger and Task
The Senior Financial Manager has sent the following email to you
From: Senior Financial Manager
Date: Today
Subject: Life cycle costing and product pricing
At a recent meeting of the senior managers, it came to light that a few of my fellow managers are
confused about the distinction between life‐cycle costing and pricing in relation to the product life
cycle, thinking that they are the same thing.
I told them that at the next meeting I’d talk briefly about the differences and how each relates to
Montel.
I’m totally swamped with other work and the meeting is in a couple of days so could you put
together some briefing notes for me on the following that I can use:
‐ what is life cycle costing and how can Montel use it?
‐ what are the pricing issues in relation to the product life cycle, where do our various products
currently sit and what considerations should we have in terms of pricing for them?
Regards,
Senior financial manager
Prepare the work that the senior financial manager has requested. (Time 45 minutes)
KAPLAN PUBLISHING 25
