LIFE CYCLE COSTING

Life cycle costing or whole costs include cradle to grave appropriate inclusion of expenditures which are included make up the lifetime of inventory in a manufacturing environment.

• Planning
• Design
• Construction 
• Acquisition
• Operations
• Maintenance
• Renewal 
• Rehabilitation
• Depreciation
• Cost of finance
• Replacement
• Disposal

When we assign these costs to production we consider the reasons for incurring these costs:

• Total-life-cycle product costing
• Target costing
• Kaizen costing
• Cost of quality
• Benchmarking
• Activity Based Costing