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 The following statements have been made about life cycle costing: 

(1) Clean up costs should be included when assessing the profitability of a product 

(2) It is useful for organisations that develop products with a relatively short life 

Which of the above statements is/are correct? 

A

 1 only 

B

 2 only 

C

 Neither 1 nor 2 

D

 Both 1 and 2 

 This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. 

While a drag and drop style question is impossible to fully replicate within a paper based medium, some questions of this style have been included for completeness. 

Which of the following are said to be benefits of lifecycle costing? 

       It provides the true financial cost of a product

  The length of the lifecycle can be shortened

  Expensive errors can be avoided in that potentially failing products can be avoided

  Lower costs can be achieved earlier by designing out costs

  Better selling prices can be set

  Decline stages of the lifecycle can be avoided 

Drag the items selected into the box below: 

Moonface is developing a new piece of technology with the following expected costs.  



What is the life cycle cost per unit? 

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【论述题】

Calculate the cost per unit looking at the whole life cycle and comment on the suggested price.