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Lifecycle costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Lifecycle costing

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • October 18, 2022 at 6:06 pm #669226
    aakarsh715
    Participant
    • Topics: 27
    • Replies: 7
    • ☆

    Why lifecycle costing doesnt help in setting price of a product? According to bpp book, life cycle costing is not concerned with setting price of a product. But can’t we set price by analysing total lifecycle costs of a product. Why is it incorrect?

    October 19, 2022 at 9:43 am #669319
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    I don’t have the BPP Study Text so I cannot see the context in which they wrote what you say.

    The main focus of life-cycle costing is obviously to determine the costs. However the costs can certainly be useful in helping to determine a selling price (but is not the only factor involved in deciding a selling price, as explained in my free lectures).

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