Life cycle costing (part 1) - ACCA Performance Management (PM)

[@romy8606]

This was really helpful. Thank you

[@opentuition]

Thank you for your comment :-)

[@MacMash]

Well done 👌

[@blackm9063]

💯

[@ntcuong01ct1]

Dear friends, I have a case: In 2018 year, the ABC company release software X version 1.0, lifecycle is 2 years and upgrade few small functions, initial capital is 500k USD. In 2020 year, the ABC company release software X version 2.0 (from previous version) , lifecycle is 3 years and upgrade few small functions, initial capital is 300k USD. Question : How we define the sale price of this software of each version by lifecycle costing?. Thank you.

[@ntcuong01ct1]

Dear Friends, I have many questions: 1 / Life cycle costing can include cost of Marketing cost, SG&A (Selling, General & Administrative Expense) costs? 2 / Life cycle costing can be applied to products with an expected lifecycle of 10 years, 20 years. 3 / Initially, 1 product had 5 features. After 2 years, this product has 2 more features, must be recalculated for a new life cycle costing ?. 4 / Is the product life determined by the subjective intention of the CEO and CFO ?, does this product life mean that this product will be sold on the market from the time of introduction until removed from the market? 5 / What are the signs between the 2 stages of introduce and Growth? 6 / What are the signs between Growth and Maturity? Thank you.