BU247 Chapter Notes - Chapter 8: Profit Margin, Critical Role, Target Costing
Document Summary
Companies that continually bring new products to the market quickly must also be concerned about the environmental impact from their innovation, as customers discard their now obsolete products. Societal concerns about pollution have caused companies such as xerox, hp, and sony to measure the total life-cycle costs of their products, including the impact of raw material extraction, energy consumption during use, and finally, salvage, recycling, and disposal. We refer to total-life-cycle costing (tlcc) as the approach companies now use to understand and manage all costs incurred in product design and development, through manufacturing, marketing, distribution, maintenance, service, and, finally, disposal. Known as from the cradle to the grave . Each part of a company"s value chain new product development, production, distribution, marketing, sales, and post sales service and disposal is typically managed by a different organizational function. Spends money on materials, labour, machinery, and indirect costs to produce and distribute the product.
