Which of the following would make life-cycle budgeting particularly important to implement?
A) a very short R&D period with minimal costs but with an emphasis on speed to market
B) a product that will be brought to market very quickly and will only be offered for a limited time
C) the development period for a product is long and that the R&D needed and the design activities are costly
D) a service that will be offered once this year and then eliminated as a result of a proposed sale of a division

Question

Quizplus · Accepted Answer

Life-cycle budgeting would be particularly important for a product with a long development period and costly R&D and design activities. This type of product is likely to have a longer life cycle, making it important to consider the costs associated with each stage of the product's life from development to disposal. Options A, B, and D are not necessarily scenarios where life-cycle budgeting would be more important than other types of budgeting.

Which of the Following Would Make Life-Cycle Budgeting Particularly Important