Learning by costing: Sharpening cost image through life cycle costing?

摘要

Purpose - The purpose of this paper is to discuss life cycle cost management and highlight the practical challenges related to collecting adequate data and practicing long-term cost management in an uncertain environment.rnDesign/methodology/approach - The paper reports a case study conducted in the Finnish Defence Forces. As part of the case study, a life cycle cost model for a case product was developed. Findings - Activity-based life cycle cost modeling can provide relevant information for varying product management needs at different stages in the life of a product. Quantification of uncertainty is one of the elements in the modeling that can improve the feasibility of LCC both for cost estimation and tracking purposes.rnOriginality/value - Only a few empirical studies on life cycle costing have been reported which focus on the defence sector. The paper contributes to our understanding of how LCC can be used in a continuous manner and depicts how LCC can produce a sharpened cost image of a particular product.