EMA – lifecycle costing, input/output analysis, flow cost accounting

Lifecycle costing is very different to the others as it looks at total costs over the lifetime of the project. This will very likely:

1 Make people pay attention to decommissioning costs after the end of the project
2 Design products carefully to reduce waste over the manufacturing life of the project.

Input/output analysis measures physical input output eg weight. The missing amount might be avoidable waste. This could e done each week or month.

Flow cost accounting: a mystery and despite reading examiner’s articles I’ve never really been convinced I ever understood it! Whereas input/output analysis looks at the whole company inputs and outputs, flow cost seems to look at how costs and quantities flow through departments. Seems to amount pretty much to input/output.