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 decrease 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 the costs associated with maintenance, repairs, and replacements are typically lower for products with higher quality and durability. By investing more upfront, customers can save money in the long run.

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