Life-cycle budgeting is particularly important when ________.
A) the development period for R&D is short and inexpensive
B) there are significant nonproduction costs
C) most costs are locked in during production
D) a low percentage of costs are incurred before any revenues are received

Question

Quizplus · Accepted Answer

Life-cycle budgeting is important when there are significant nonproduction costs, which are costs that occur outside of the production phase such as research and development, marketing, and maintenance. It is important to take into account these costs throughout the entire life cycle of a product, from conception to disposal, in order to make informed financial decisions.

Life-Cycle Budgeting Is Particularly Important When ________