Life-cycle budgeting is particularly important when nonproduction costs are significant.

Question

Quizplus · Accepted Answer

Life-cycle budgeting takes into account all costs associated with a product or service, including nonproduction costs such as research and development, marketing, and maintenance. By considering these costs over the entire life cycle of the product or service, a more accurate budget can be developed and potential cost savings can be identified. Therefore, life-cycle budgeting is particularly important when nonproduction costs are significant.

Life-Cycle Budgeting Is Particularly Important When Nonproduction Costs Are Significant