Accounting · Life Cycle Costing
One of the directors commented that cost estimates are incomplete as they do not include costs incurred during the service and abandonment phase of a product. Which of the following costs are typically incurred during the service and abandonment phase? (1) Decommissioning of factories (2) Design updating (3) Servicing and warranty costs (4) Disposing of products as required by local environmental laws
- 11, 3 and 4 only✓
- 21 and 4 only
- 32 and 3 only
- 41 and 3 only
Correct answer
1, 3 and 4 only
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