Consider the following statements about budgeting and a product's life cycle:
I.Budgets should focus on costs that are incurred only after a product has been introduced to the marketplace.
II.Life-cycle costs would include those related to product planning,preliminary design,detailed design and testing,production,and distribution and customer service.
III.When a life cycle is short,companies must make certain that before a commitment is made to a product,the product's life-cycle costs are covered.
Which of the above statements is (are)true?

Question

Quizplus · Accepted Answer

Statement II is true, as life-cycle costs involve all aspects of a product's development, production, and distribution. Statement III is also true, as short product lifecycles mean that costs need to be covered quickly. Statement I is not true, as budgets should focus on all costs incurred throughout a product's life cycle, not just those after the product has been introduced. Therefore, only statements II and III are true.

Consider the Following Statements About Budgeting and a Product's Life