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ADVANCED MANAGEMENT ACCOUNTING
Finance & Accounting
Pages 8 (2008 words)
Advanced Management Accounting Digital Gaming Industry: A Case of Sony Play Station Student’s Name 2/2/13 Introduction The digital gaming revolution has transformed the entire structure of the digital gaming industry. The technologically rich and advanced gaming consoles have replaced the older ones completely.
Managers, as a result, are employed with the various costing and pricing methods to identify a suitable price for the products they offer. In the industries and businesses where innovation, uniqueness and transformation is found on a higher level, costing and pricing issues become more complex and complicated to manage. The products under such industries like fashion products, clothing, technologically rich industries like video gaming, computers etc. have shorter life and the costs incurred need to be realized and profits earned within the limited time frames before a new product hits the market. The products are highly susceptible to be devalued once a competitor launches a new product or modifies an existing one significantly. This paper aims at discussing the use of target costing and life cycle coting in the ever-changing and developing digital gaming industry. Life Cycle Costing Life-cycle costing aims at calculating the approximate costs of a product and spreading them over the life of that product in order to keep a track and balance of profits and escape any losses that may arise. The various life-cycle stages are Introduction, Growth, Maturity and Decline. The expenses related to each product life-cycle phase differ. ...
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