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.
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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.
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