Globalization, intensified competition, rapid transformation in technology, shortening of product life cycles, and changes in consumer/end user expectations have transformed business structures. Business executives, who have to keep up with this change, had to develop new strategies and implement them. In particular, strategic cost approaches/methods were developed to produce more effective and efficient cost information as traditional cost systems became inadequate under rough competition conditions. One of these methods was the product life cycle based costing, developed by the US Department of Defense in the 1960s. Life cycle costing is the sum of all costs incurred from the design stage of the product until the end of its useful life.  In other words, these are the costs that arise before the fabrication of the product and last until it no longer has a usage value. This method aims to manage the costs that are likely to occur throughout the life cycle of a product. In this respect, there are direct and indirect costs related to the product, which emerge in product design, development, production, usage, sales, improvement, and maintenance-repair processes. The above-mentioned method makes it possible to compare the sum of total costs that will arise during the life cycle of the product with the total contribution/income it will provide to the business within the same life cycle and thus reflects the actual profitability of the product. In summary, the product life cycle based costing approach enables business managers to both monitor and manage the costs that will arise throughout the life cycle of the product. This study aims to ensure more effective cost management by proposing a model for life cycle based costing.