The correct answers are:

• Life cycle costs are the costs incurred on products from their design stage, through development to market launch, production and sales, and their eventual withdrawal from the market (by tracing costs to individual products over completed lifecycles, total profitability can be determined)

• Life cycle costing enables total profitability of any given product to be determined

The incorrect answers are:

• Life cycle costing is a traditional costing principle (Life cycle costing is part of modern management accounting practise)

• Whilst Life cycle costing considers costs associated with the launch of products in the market place, Research and Development Costs are still treated as period costs and not traced to products (life cycle costing includes tracing R&D expenditure to products)