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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › life cycle
2.Life cycle costs is most useful for product with an even weighting of costs over their life.
you explained to someone that ‘Whether or not the costs are spread evenly over the life is not relevant, which is why the second statement is not true.’
So to make this concept more clear i wanted to ask an explanation on the following statement. so the cost doesnt need to be spread over the life but profit does?
or the key term is EVENLY?
1. Life cycle costing ensures a profit is generated over the life of the product. TRUE
Neither the costs nor the profits need to be spread evenly.
The aim of lifecycle costing is indeed to ensure a profit is made over the life of the product.