Life-cycle

Definition

Life-cycle refers to the series of stages a product or service goes through from inception to disposal. In managerial accounting, understanding the life-cycle is crucial for sustainability reporting and creating long-term business value.

5 Must Know Facts For Your Next Test

1. Life-cycle costing considers all costs associated with a product over its entire life span.
2. Sustainability reporting often includes assessments of environmental impacts at each stage of the life-cycle.
3. Effective life-cycle management can enhance resource efficiency and reduce waste.
4. Companies use life-cycle analysis to improve sustainability and meet regulatory requirements.
5. Integrating life-cycle perspectives helps businesses identify opportunities for innovation and cost savings.

Review Questions

• What is the importance of considering the entire life-cycle in managerial accounting?
• How does life-cycle costing contribute to sustainability reporting?
• Identify two ways in which businesses can benefit from effective life-cycle management.

Related terms

Sustainability Reporting: The process of disclosing information on a company's environmental, social, and governance (ESG) performance.

Life-Cycle Costing: A method that assesses total costs associated with a product from inception to disposal.

Environmental Impact Assessment (EIA): A procedure used to evaluate the environmental consequences of proposed activities or products.