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life cycle costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › life cycle costing

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • April 6, 2022 at 10:48 pm #652807
    zainrajput
    Participant
    • Topics: 8
    • Replies: 5
    • ☆

    which of the following statements are correct?
    1. the life cycle curve will be same for all products
    2. the product life cycle concept is not relevant to pricing policy

    Is life cycle curve the same for all products, because some products don’t reach a decline stage and also life cycle costing is relevant to costing only or is it also relevant to pricing policy? please let me know

    April 7, 2022 at 10:39 am #652827
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Again, why are you attempting questions for which you do not have an answer?

    The first statement is not true – different products will have different life cycle curves.

    The second statement is true, but is really a rather poor question. The idea of there being a life cycle should be taken into account when determining prices, but does not have to be – the business can adopt various different pricing policies regardless of the life cycle (as explained in my free lectures on pricing.

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