Using the life-cycle costing approach, salespeople can demonstrate that:
A)a product in the decline stage of its product life cycle will have little, if any, service.
B)a product with a higher initial cost will have lower overall costs.
C)operational costs do not change over the life time of capital equipment.
D)a product in the introductory stage of its product life cycle will have more problems than one in a later stage.
E)operational costs actually decreased over the life time of capital equipment due to increased familiarity.

Question

Quizplus · Accepted Answer

Using the life-cycle costing approach, salespeople can demonstrate that a product with a higher initial cost will have lower overall costs. This is because life-cycle costing takes into account all costs associated with a product over its entire life cycle, including maintenance, repairs, and disposal costs. A product with a higher initial cost may have lower maintenance and repair costs, and may last longer, resulting in lower overall costs.

Using the Life-Cycle Costing Approach, Salespeople Can Demonstrate That