Life-Cycle Cost Accounting

Level: Undergraduate | Grade: 2:1 | Approx. Word Count: 650

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This brief essay is intended to provide a reflective approach that highlights the student’s understanding of key elements related to cost and management accounting in the practical organisational environment.

Irrespective of the type of activity an organisation carries out, there are tangible resources (assets) that will be required for the purpose of facilitating the development, maintenance and administration will attract costs that are in addition to the initial purchase price (Drury, 2012). The ongoing cost of these resources, which may include items, such as machinery, plant and equipment, technology and vehicles, need to be determined based on the useful life of the asset (Dhillon 1989), through a process known as life-cycle costing.
Model: Undergraduate