Analysis of life cycle stages and implementation of product life cycle costing in Hormozgan Gas Company

Document Type : Original Article

Authors

1 Department of Accounting, Faculty of management economics and accounting, University of Hormozgan, Bandar Abbas, Iran

2 Faculty of Qeshm International Branch Campus,Gheshm branch, Islamic Azad University, Qeshm, Iran

3 Department of Accounting, Gheshm Branch, Islamic Azad University, Gheshm, Iran

4 Department of Accounting, Faculty of management and economics, Shahid Bahonar University of Kerman, kerman, Iran

5 Department of Accounting, Faculty of management, economics and Accounting, University of Hormozgan, BandarAbbas, Iran

10.30495/ijfma.2022.67465.1853

Abstract

The present study first seeks to study and analyze the different stages of the life cycle in the Hormozgan Gas Company and then implements costing based on product life cycle of the company. The data in the present study are extracted from financial statements and interviews with financial, technical, safety and health experts. The present study is an applied study and a case study that has been done for the years 2012 to 2020. The results of research based on Di Angelo method show that the company is in a decline stage and should take urgent measures to increase sales of its product or look for an alternative product. Examination of the life cycle by Dickinson method showed that the company is in the stage of maturity and will soon enter the stage of decline, so the managers of the company should seek to increase cash flows. Also, the calculation of the cost of life of the product showed that the mentioned cost is significantly different from the cost based on accounting standards, to the extent that in 2020, the application of the mentioned costing in income statement reduces the gross profit by 25%.

Keywords

References

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