Lazy Linda Kitchen Appliances has just begun the development of a new energy saving,voice-activated toaster.The accountant,Linda Rest,is preparing a life cycle budget.Which of the following costs should be included?
i.The salaries of the designers dedicated to the design of the new toaster
ii.The committed costs associated with the acquisition of a new machine which manufacturers the voice recognition component of the toaster.
iii.The cost of producing the new toasters.iv.The costs associated with establishing a distribution network for the new product.
A) i,ii and iii
B) i,iii and iv
C) ii and iii
D) All of these costs should be included

Question

Quizplus · Accepted Answer

All of these costs should be included in the life cycle budget as they are all relevant to the development, production, and distribution of the new product. The cost of establishing a distribution network may be considered a marketing expense but it should still be included in the life cycle budget.

Lazy Linda Kitchen Appliances Has Just Begun the Development of a New