Reviewing life cycle costing from Strategic Management Accounting perspective

To review life cycle costing, you first study the basic concept from Bhimani et al. (2008; Chapter 12). Then, you need to study carefully Emblemsvag (2003; chapter 2), which is a more detailed explanation of life cycle costing from the management accounting perspective. The following diagram roughly captures the main ideas of this reference from Strategic Management Accounting perspective:

In your reading, you will come across terms and concepts that you are not familiar with, e.g. product life cycle notion. For that, you probably need to learn more about these related concepts via Internet search. After that, you try to do more reading on this topic; a more academic article that is SMA oriented, thus highly relevant is Dunk (2004). Do not be surprised that some of these articles are more engineering in perspective than management accounting in perspective, e.g. Gluch and Baumann (2004) and Bailey (1991). As you conduct your review, try to bear in mind the list of evaluation questions in strategic management accounting from Ho (2011).


References

1. Bailey, P.E. (1991) "Life-Cycle Costing and Pollution Prevention", Pollution Prevention Review, Winter, pp. 27-39.
2. Bhimani, A., Horngren,C.T., Datar, S.M. and Foster, G. (2008) Management and Cost Accounting, FT Prentice Hall.
3. Dunk, A.S. (2004) "Product life cycle cost analysis: the impact of customer profiling, competitive advantage, and quality of IS information", Management Accounting Research 15, pp. 401-414.
4. Emblemsvag, J. (2003) Life Cycle Costing, Wiley.
5. Gluch, P. and Baumann, H. (2004) "The life cycle costing (LCC) approach: a conceptual discussion of its usefulness for environmental decision-making", Build and Environment 39, pp. 571-580.