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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › pilot paper plx refinery, part d.
Dear sir.
this life cycle costing qsn. In the answer, labor costs and the levied fines were not included. l would like to know why? since we have to accumulate all costs from start to the end of the project.
Forecast production costs will already include the expected labour costs.
I would not expect them to predict and forecast the fines.
Lifecycle costing would usually be carried out before any development or other costs had been incurred to see if there was any hope of making a profit at a viable selling price.