Life-cycle costing is best described by which of the following?
A) it is a method of cost planning to reduce manufacturing costs to targeted levels
B) it is the process of tracking and accumulating costs that are incurred within the manufacturing and distribution links of the value chain
C) it is the process of tacking and accumulating business function costs across the entire value chain
D) it is a costing system that focuses on reducing costs during the manufacturing cycle

Question

Quizplus · Accepted Answer

Life-cycle costing is the process of tracking and accumulating business function costs across the entire value chain, from research and development to final disposal. It considers the total cost of ownership over a product or service's entire life cycle, including acquisition, operation, maintenance, and disposal costs. By taking into account all costs, life-cycle costing helps businesses to make more informed decisions and choose products and services that provide the best value over their entire life cycle.

Life-Cycle Costing Is Best Described by Which of the Following