Usage of product life cycle costing in investment decisions and a sample practive

Product life cycle costing involves the costs appearing throughout the product?s entire life and provides information to managers in understanding and managing these costs.The method helps the firms regarding the possibility of investment application which are planning to make investment as well. Firm can use these informations while making their investment decisions by cost forecasting which commences from the period of idea of product creation until product?s disappearence from the market. In making the investment decision, the firm deciding according to net current value or cash inflow, in order to support its own decision, it will calculate the current value of estimated product life cycle costs, thus giving the investment decision according to difference between estimated sales income and estimated product life cycle costing.In this study a firm operating in Afyonkarahisar province in Turkey has been chosen for modelling and applicability of product life cycle costing in investment decisions have been tried to be determined.