• Skip to primary navigation
  • Skip to main content
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA PM:
  • PM Notes
  • PM Lectures
  • Practice Questions
  • PM Flashcards
  • Revision Lectures
  • PM Mock Exam
  • PM Forums
  • Ask the Tutor
  • Ask AI (New!)

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

PM Chapter 3 Questions Life-cycle costing

VIVA

聽

Reader Interactions

Comments

  1. sdehnjo says

    May 12, 2020 at 6:45 am

    100% first attempt

    Log in to Reply
  2. mariamohi says

    January 27, 2020 at 10:14 am

    100%

    Log in to Reply
    • John Moffat says

      January 27, 2020 at 2:47 pm

      Very good 馃檪

      But do make sure that you buy a Revision Kit from one of the ACCA approved publishers. Our tests are just meant to be quick checks, but the Revision Kit is full of past exam and other exam-standard questions in the various question formats. Practice at all the questions is essential to passing the exam.

      Log in to Reply
  3. andyv says

    January 8, 2020 at 4:24 pm

    100% …:)

    Log in to Reply
  4. wrightimpact1 says

    December 27, 2019 at 7:21 am

    My first 100% 馃檪 馃檪 out of chapters 1-3 *dances*

    Log in to Reply
  5. urmilsanghavi says

    September 14, 2019 at 7:00 am

    100% result , thank you john

    Log in to Reply
    • John Moffat says

      September 14, 2019 at 10:16 am

      Great 馃檪

      Log in to Reply
  6. maganok says

    August 3, 2019 at 12:26 pm

    Scored lowest on this quiz,had to go back to the lecture videos.
    It makes sense now.Thank you.

    Log in to Reply
    • John Moffat says

      August 3, 2019 at 4:33 pm

      You are welcome 馃檪

      Log in to Reply
  7. gaie says

    February 13, 2019 at 11:52 pm

    Hello
    I got question 1 wrong, does it mean that profit is generated throughout the product life cycle even though it is negative profit ie loss which is in the stages from development to growth

    Log in to Reply
    • John Moffat says

      February 14, 2019 at 7:21 am

      No – it means that overall there is a profit (there is likely to be a loss in some years, but a profit in other years – the intention is that over the whole life an overall profit will result).

      Log in to Reply
      • gaie says

        March 26, 2019 at 11:03 pm

        thank you

      • John Moffat says

        March 27, 2019 at 8:02 am

        You are welcome 馃檪

  8. mohamed93 says

    December 13, 2018 at 3:38 pm

    How is statement 1 correct you dont make a profit in the stage of design and and introductory can you explain

    Log in to Reply
    • John Moffat says

      December 13, 2018 at 4:16 pm

      But I explain this in the free lecture – did you not watch the lecture before attempting the test?

      Initially you have few sales and a lot of expenses – so you are likely to make a loss.

      Log in to Reply
  9. zulfugar says

    August 19, 2018 at 7:31 pm

    Dear tutor,

    Firstly, thank you very much for taking time to create such a great lecture series and share it for free with all of us!

    Secondly, I would like to point out something that I don’t quite agree with in regards to the semantics of the first question. Although, I understand that BEFORE any costs are incurred in regards to a product, ALL of the lifecycle costs should be taken into consideration. But the way the second statement is constructed, “costs ALREADY spent on the design and development” implies D&D costs are already IRRELEVANT (i.e. they are sunk costs) for decision making. Hence, one would argue that if a company is to do a Lifecycle Costing analysis AFTER the costs are already incurred (which is the case with the second statement) then the second statement should be considered correct.

    Thank you and best regards!

    Log in to Reply
    • John Moffat says

      August 20, 2018 at 5:58 am

      I understand your point, but life-cycle costing is different from relevant costing in that it attempts to find the cost over the entire life of the product and includes all costs (as a basis for a decision on what selling price to charge).

      (This was an actual past exam question)

      Log in to Reply
  10. camilopereira02 says

    December 19, 2017 at 7:19 am

    Dear sir,

    I am wondering why we should take the design and development cost in consideration to calculate the life cycle cost per unit in this question. Design and development costs should not be exception, because the product is not generating revenue yet as it was told in the question 2?

    Thank you very much

    Log in to Reply
    • John Moffat says

      December 19, 2017 at 7:50 am

      We are after calculating the total cost and we include all costs involved, regardless of when it starts generating revenue.
      (This is nothing to do with how costs would be reported in financial accounts – this is in order to help determine the selling price needed to make the product worthwhile.)

      Log in to Reply
  11. shibl says

    November 20, 2017 at 3:27 pm

    Great!!!!!
    I know my comment is irrelevant here but I don’t know how to express my feelings and where to and how to show you my heartfelt thanks.
    I will InshaAllah (by the will of God) donate to your cause.
    God be with you!!!
    keep up the good work

    Log in to Reply
    • John Moffat says

      November 20, 2017 at 6:38 pm

      Thank you very much for your comment 馃檪

      Log in to Reply
  12. preetierc says

    May 21, 2017 at 9:30 pm

    The first question, I don’t quite agree with statement two being incorrect. Lifecycle costing do take all cost over a product lifecycle including of the design and development cost. And more importantly why the costs are taken for a product over its entire lifecycle is because most of a product cost are incurred in the design and development stage where the product have not reach the market as yet but have started to incur cost. At least that’s what the Text book says. Please let me know if there’s a reasonable explanation for the exception of design and development cost on a product life cycle

    Log in to Reply
    • preetierc says

      May 21, 2017 at 9:50 pm

      Hello please disregard my comment above. I realize my error. Sorry about that 馃檪

      Log in to Reply
      • John Moffat says

        May 22, 2017 at 5:32 am

        No problem 馃檪

  13. gemy says

    March 6, 2017 at 2:10 am

    Sir,

    Why did we use the manaufacturing cost to calculate the cost per unit in Example 1 in the lecture but used the total cost to calculate life cycle costing for practice question #3?

    Kindly clarify, please

    Log in to Reply
    • John Moffat says

      March 6, 2017 at 6:14 am

      But in the lecture we also use total costs – that is the whole point of lifecycle costing!

      (The manufacturing cost in the lecture is $6 per unit, but the lifecycle cost is $7.80 per unit).

      Log in to Reply
      • gemy says

        March 6, 2017 at 3:44 pm

        Thanks for your response. I agree we used total costs for both questions however I was wondering whether there was a particular reason why the calculation of the cost per unit used use manufacturing costs ($240,000 lecture) as opposed to total costs (160000 practice quest

      • John Moffat says

        March 6, 2017 at 3:52 pm

        But there is no 240,000 in the lecture! The manufacturing costs are 50,000 units at $6 per unit, and to this is added the design and development and the end of life costs.

  14. ganeshkrupad says

    February 2, 2017 at 3:01 pm

    Good practice question. Thank you.

    Log in to Reply
    • John Moffat says

      February 2, 2017 at 3:28 pm

      You are welcome 馃檪

      Log in to Reply
  15. msipad says

    November 21, 2016 at 10:28 pm

    good questions, hope all will be this nice in exams

    Log in to Reply
    • John Moffat says

      November 22, 2016 at 5:11 am

      Do make sure that you also have a Revision Kit from one of the ACCA approved publishers – it is vital to practice lots and lots of questions.

      Log in to Reply
  16. Samuel Koroma says

    May 5, 2016 at 1:25 pm

    Thanks for the practice questions. Students should note that life-cycle costing tracks and accumulates costs and revenues associated with a product over its entire life-cycle.

    Log in to Reply
    • John Moffat says

      May 5, 2016 at 1:47 pm

      Which is covered in our free lectures 馃檪

      Log in to Reply
  17. thaohuyen67 says

    March 23, 2016 at 8:16 am

    Pls explain the question 1, Why is Statement 1 true? Because I think in development phase it doesn’t make any profit? Am I right?

    Thank you very much,

    Log in to Reply
    • John Moffat says

      March 23, 2016 at 2:02 pm

      Statement 1 is not saying that there will be a profit in each individual year – there quite likely will not be.

      It is saying that we ensuring a profit over the entire life. i.e. that over the whole life it does make a total overall profit.

      Log in to Reply
  18. gonko says

    November 26, 2015 at 4:05 pm

    Lifecycle costing question regarding if it takes account of all costs over the life of the product, I think the selection is wrong. A site/software issue. Just a heads up.

    Log in to Reply
    • John Moffat says

      November 26, 2015 at 6:34 pm

      The answer given in the test is correct – it is not a site/software issue.

      Statement 2 is not correct – lifecycle costing takes into account all costs and does not exempt certain costs.

      Log in to Reply
      • gonko says

        December 3, 2015 at 4:49 pm

        Apologies John. My mistake.

      • John Moffat says

        December 3, 2015 at 4:53 pm

        No problem 馃檪

  19. oluwanisola says

    November 15, 2015 at 8:34 pm

    i was a bit scared, thought i was mistaken when i didnt see the costs just now till i read the comment.

    Log in to Reply
    • John Moffat says

      November 16, 2015 at 7:02 am

      Sorry 馃檨

      Log in to Reply
  20. Fidelka says

    November 15, 2015 at 4:23 pm

    There are no lifetime costs on the screen. All three: Design and Development, Manufacturing and End of life costs are shown without $ amounts???

    Log in to Reply
    • John Moffat says

      November 15, 2015 at 6:11 pm

      Oops!

      Thank you for letting me know. I will have it corrected 馃檪

      Log in to Reply
Newer Comments »

Leave a Reply Cancel reply

You must be logged in to post a comment.

Copyright © 2025 路 Support 路 Contact 路 Advertising 路 OpenLicense 路 About 路 Sitemap 路 Comments 路 Log in