A technique, which accumulates and tracks the costs of business function in value chain attributed to each market, offering from R&D to final customer support, is called __________?

Correct answer: C. life cycle costing

  • A. product life cycle
  • B. life cycle budgeting
  • C. life cycle costing
  • D. target costing

Explanation

Life-cycle costing accumulates costs across the entire value chain, from research and development through production, marketing, distribution and customer support. Target costing mainly focuses on achieving a cost target before production begins.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? support@testustad.com

About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

Practise Cost Accounting

941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Accounting questions like this

Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Cost Accounting questions