9. Cost management I

Question 1

What is Life-cycle costing?

Answer 1

A method of managing costs over the whole of a product or service’s life
Instead of the traditional way of focusing on managing
costs during the production phase only, and on period costs and results

Question 2

Wat is Cost-volume profit analysis (CVP)?

Answer 2

a key tool for understanding the relationship between revenue, costs and sales volume is then examined, together with target costing as applied to new product introductions.