Which statement is true with regards to the product lifecycle?
A)The product life cycle is usually 10 to 20 years.
B)Life-cycle costs should never been considered in short run pricing decisions.
C)Life-cycle costs provide important information for pricing.
D)Life-cycle costs are not relevant in differential analysis.

Question

Quizplus · Accepted Answer

Life-cycle costs provide important information for pricing. This means that considering the product life cycle is crucial when making pricing decisions, as it provides an understanding of the costs and revenue associated with a product over its lifespan. Option A is incorrect because the product life cycle can vary greatly depending on the industry and the type of product. Option B is incorrect because life-cycle costs should always be considered in pricing decisions. Option D is incorrect because life-cycle costs are relevant in differential analysis as they provide information on the costs and revenue of alternative products or choices.

Which Statement Is True with Regards to the Product Lifecycle