The total cost incur by customer to use, acquire, maintain and dispose service or product is classified as ___________?
Correct answer: C. customer life cycle
- A. budgeted life cycle
- B. targeted life cycle
- C. customer life cycle
- D. operating life cycle
Explanation
Customer life-cycle cost includes the customer's total cost of acquiring, using, maintaining and disposing of a product or service. It measures the offering from the customer's perspective rather than the producer's cost over its product life.
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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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