3.5 (2 marks) Which of the following statements best describes the application of lifecycle costing:

i) Life cycle costing is a short term costing technique that identifies costs at the beginning of a products life cycle.

ii) Life cycle costing calculates the products annual profitability by identifying all costs that relates to a product each year.

iii) Life cycle costing works out the overall profitability of a product by accumulating all product costs over the life of a product

iv) Life cycle costing matches the costs of a product at each stage of the product life cycle and charges them in that stage.

A (i) and (iii)

B (iii) only

C (i) and (iv)

D (ii) only