Job Design Theory

We know nthat total life-cycle costing draws management’s attention to the fact that it is not only the production phase in which costs are incurred. But Costs begin to accumulate at the earlier phases, such as phase of product design, site development and setting up the production process. (For some type of businesses, for example, pharmaceutical businesses, these early phase costs may represent a high share of the total costs incurred.) In addition to this, there are costs continue to accumulate after production of the product, such as those relating to distribution and after-sales service. In certain cases there may also be abandonment costs, such as the costs of de-commissioning an oil rig operating in the North Sea. The idea of Total life-cycle costing is concerned with identify, recognize and reporting all costs relating to a product from the beginning to the end of its life. All the revenues that are generated over the life cycle of the product are also tracked; so that we can assess its profitabili