Lifecycle costing - part 1
Taught by Nick Drape · AI tutor support included
You'll learn what lifecycle costing is and why it matters for modern product development. This technique considers all costs from product conception through to abandonment, helping you determine whether a product will be profitable over its entire lifespan rather than just looking at single accounting periods.
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In this lesson
- 0:00 Lifecycle Costing in modern manufacturing
- 0:39 Understanding the product lifecycle stages
- 1:54 Growth, maturity and decline phases
- 3:13 Why traditional costing misses the bigger picture
- 4:46 Lifecycle Costing approach and methodology
- 5:51 Using Lifecycle Costing for launch decisions
- 7:20 Worked example: calculating lifecycle cost per unit
- 11:09 Using lifecycle costs for pricing decisions
About this lesson
In this first part, you'll explore the product lifecycle stages, understand how lifecycle costing differs from traditional approaches, and work through a practical example calculating lifecycle cost per unit. This is essential for Performance Management and relevant to CIMA and ACCA qualifications where strategic cost decisions directly impact profitability and business viability.
Duration: 12m
Transcript
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