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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Lifecycle period cost
We only include costs related to a life of a product in lifecycle costing. Any other cost relating to any other period would be irrelevant?
For example:
If we produce a product that has a life of 5 years so every cost relating to those 5 years would be relevant for lifecycle costing BUT if we are given other costs relating to any other period which is more than 5 years then we would not be including that cost in the calculation?
We include all costs over the life of the product. The only example I can think of as to why there should be any costs after the five years is that maybe in the 6th year there are costs of dismantling the machinery involved. If that was the case then these would be included as well.