Pioneer Electronics Company is a manufacturer of electronic products for domestic usage.

In the
annual general meeting, it was proposed to shift the focus from Traditional Cost Management
Accounting to Life-Cycle Costingdue to the fact that Traditional Cost Management
Accounting focuses only on cost incurred during the manufacturing stage of product life-cycle
whereas Life-Cycle Costing focuses on both pre and post manufacturing stages of product life-
cycle. Through Life-Cycle Costing company can identify different stages where costs are
incurred. Life-Cycle Costing consists of the following three stages.
1. Planning and Design.
2. Manufacturing and Sales.
3. After Sales Services and Abandonment.
Required:
You are required to comment on the following, your comments must be sound and based on
logical facts.
1. Identify the Cost Reduction Tool which is normally applied during:
a. Planning and Design stage of life-cycle costing.
b. Manufacturing and Sales stage of life-cycle costing.
2. What approximate percentage of cost is committed or Locked-in during the planning and
design stage of product life cycle?
3. Identify and discuss at least one difference between the cost reduction tools applied
during:
a. Planning and Design stage of life-cycle costing.
b. Manufacturing and Sales stage life-cycle costing.
Important Instructions:
1. Your answer should be relevant to the topic i.e. clear and concise.
2. Do not copy or exchange your answer with other students. Two identical / copied
comments will be marked Zero (0) and may damage your grade in the course.
3. Books, websites and other reading material may be consulted before posting your
comments; but copying or reproducing the text from books, websites and other reading
materials is strictly prohibited. Such comments will be marked as Zero (0) even if you
provide references.
4. For Detailed Instructions please read the GDB Announcement.

Note: Your comment should not be greater than 100 words.