Next Article in Journal
A Global Assessment of Sustainable Development Based on Modification of the Human Development Index via the Entropy Method
Next Article in Special Issue
An Overview of Current Challenges in New Food Product Development
Previous Article in Journal
The Influence of Hallyu on Africans’ Perceptions of Korea: The Moderating Role of Service Quality
Previous Article in Special Issue
Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing
Open AccessArticle

Life Cycle Costing: Understanding How It Is Practised and Its Relationship to Life Cycle Management—A Case Study

Environmental Technology and Management, Department of Management and Engineering, Linköping University, 581 83 Linköping, Sweden
Sustainability 2020, 12(8), 3252; https://doi.org/10.3390/su12083252
Received: 2 March 2020 / Revised: 6 April 2020 / Accepted: 10 April 2020 / Published: 16 April 2020
(This article belongs to the Special Issue Product Development and Life-Cycle Management)
Despite the existence of many life cycle costing (LCC) methods, LCC is not widely adopted and LCC methods are usually further tailored by practitioners. Moreover, little is known about how practising LCC improves life cycle management (LCM) especially if LCM is considered emergent and constantly developing. In a manufacturing company, LCC is prescriptively introduced to improve LCM. In the first part, this study describes how various methodological choices and other aspects of practising LCC were the outcome of contestation and conformity with extant practices and not only the best way to fulfil the LCC’s objective. This contestation can even influence if LCC is adopted. In the second part of the research, the implications of practising LCC on LCM are explored. LCC is found to positively propel LCM in many ways e.g., by spreading the life cycle idea, but may lead to a narrower understanding of the term life cycle resulting in the sustainability focus of LCM being overridden. The article also discusses how the findings can be taken into consideration when researchers develop LCC methods and when industry practises LCC. View Full-Text
Keywords: product-service systems; servitization; performativity; life cycle engineering; cost accounting; sustainability; research and development; R& D; total cost of ownership; barriers product-service systems; servitization; performativity; life cycle engineering; cost accounting; sustainability; research and development; R& D; total cost of ownership; barriers
Show Figures

Graphical abstract

MDPI and ACS Style

Kambanou, M.L. Life Cycle Costing: Understanding How It Is Practised and Its Relationship to Life Cycle Management—A Case Study. Sustainability 2020, 12, 3252.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop