AN ASSESSMENT OF THE DEGREE OF INTEGRATION OF LIFE-CYCLE COSTING WITHIN BUDGETARY PLANNING PROCESSES

Abstract

This study assesses the degree of integration of life-cycle costing (LCC) within budgetary planning processes in industrial enterprises. Using a quantitative research design, data were collected from management accounting and financial professionals through a structured questionnaire. A composite Integration Index was developed to measure the extent to which LCC is embedded in capital budgeting, operational planning, strategic alignment, and performance evaluation systems. The findings reveal a moderate level of integration, with stronger application in capital budgeting and limited use in operational and performance-related processes. The results also indicate that organizational factors, particularly firm size and level of digitalization, significantly influence the degree of integration. Larger and more technologically advanced enterprises demonstrate higher levels of LCC adoption, while smaller firms face notable constraints. The study contributes to the literature by providing a measurable framework for evaluating LCC integration and offers practical implications for improving budgeting systems to support long-term decision-making and sustainable organizational performance.