Life-cycle costing:
§ is the profiling of cost over a product’s life, including the preproduction stage
§ tracks and accumulates the actual costs and revenues attributable to each product from inception to abandonment
§ enables a product’s true profitability to be determined at the end of its economic life.
3.2 The costs involved at different stages in the product life-cycle
Most products have a distinct product life-cycle: