Which of the following is TRUE concerning Life cycle budgeting?

Question

Quizplus · Accepted Answer

Life cycle budgeting helps in setting prices to cover costs in all business functions. This is because it considers all costs associated with a product or service throughout its entire life cycle, from development to disposal or retirement. By analyzing these costs, a business can determine the optimal selling price to ensure that all costs are covered and the business remains profitable. It does not obscure revenues in minor business functions, highlights both costs and revenues, and does not assume that selling price is fixed over the entire life cycle of the product. Additionally, it does not necessarily have a calendar year focus and can be applied to any period of time.

Which of the Following Is TRUE Concerning Life Cycle Budgeting