Life cycle cost management takes into consideration the fact that costs and revenues:
A)are higher in the early stages of the product life cycle than in later stages.
B)are not constant across different stages of the product's life cycle.
C)slow down in the maturity stage of the product life cycle.
D)are higher when products use more activities.

Question

Quizplus · Accepted Answer

Life cycle cost management recognizes that costs and revenues are not constant across different stages of the product's life cycle. It takes into consideration that more costs are typically incurred in the early stages of development, whereas revenue may not be generated until much later in the life cycle. By considering these fluctuations in costs and revenues, a company can more effectively balance its spending and maximize profits over the product's life cycle.

Life Cycle Cost Management Takes into Consideration the Fact That