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Life Cycle Costing – a case study-based evaluation

  • This thesis examines Life Cycle Costing through a literature review and a fictional case study. It explores key challenges faced in implementing and utilizing Life Cycle Costing, proposes strategies for overcoming these challenges, and evaluates the potential impact of early integration of this technique on decision-making processes. Additionally, by use of the case study, the thesis exemplifies how Life Cycle Costing identifies trade-offs that would otherwise have remained unnoticed. The case study highlights how the implementation of the technique unveils that the option initially expected to be more costly turns out to be more economical. The findings underscore the superiority of the Life Cycle Costing methodology, questioning the narrow focus on immediate costs in traditional cost accounting, opening the door to a business model where long-term cost savings are recognized and valued.

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Metadaten
Author:Sarah Renner
Advisor:Frank Kramer
Document Type:Bachelor Thesis
Language:English
Year of Completion:2024
Granting Institution:Hochschule Furtwangen
Date of final exam:2024/03/31
Release Date:2024/04/03
Tag:Life Cycle Costing; Traditional Cost Accounting
Page Number:61
Degree Program:IBM - International Business Management
Functional area:Finance & Accounting
Licence (German):License LogoUrheberrechtlich geschützt