Ivey Co is an electronic business operating within an advanced manufacturing technology environment producing fitness watches, weight scales and other electronic items it uses life cycles costing (LLC)

Ivey Co is about launch a new electronic gadget called the dean, for measuring health statistics in partients who are unwell. it intends to sell the gadget to hospitals.

	20c1	20x2
Number of Diams	5,000	7,500
components cost per unit	$12.00	$10.00
labour cost per unit	$14.00	$12.00
total fixed production cost	$5,000	$4,500
Total Fixed selling and distribution cost	$1,000	$12,000

Invey co is also thing of developing "smart" weight scales that scan food labels and give nutrients based on the weight

the below is the question

23. Which TWO of the following statements about using LCC for the Diam are true?

• LCC aims to ensure that a profit is generated over the entire life of the Diam
• LCC focuses on the short term by identifying costs at the beginning of the Diams life cycle
• LCC writes off costs to each stage of the Diams life cycle
• LCC ensures that the price set for the Diam is based on better knowledge of costs