Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 39

Distinguish pricing based on the cost life cycle and pricing based on the sales life cycle and give an example method for each.

Step 1 of 4

“The cost life cycle is measured as a system which is used in the business to track the actual expenses and revenues which are incurred for a cost object. This identification of the cost object is normally gathered from its introduction to the decline stage.

It also traces the expenses and revenue which are attributable to products over the period or stages in the cycle.”