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What is a Product Life Cycle?
A product life cycle quantifies the entire period starting from the items initial research and development to eventual withdrawal from the market.
It consists of four stages
Need for Product Life Cycle Budgeting and Costing in study course
Lifecycle Budgeting and Costing accounts for the estimation and documentation of costs at each stage of a Products Life Cycle in a holistic manner.For example, if a firm reduces its design costs on a particular product then it can utilize the expense saved on improving theirs after sales customer services.
With life-cycle product budgeting and costing assignment help, you will get to understand that revenues have to cover costs at each stage of the cycle.
What is Product Life Cycle Budgeting and Costing?
In general, the total cost of ownership of a product is far greater than its initial research and development costs. It varies according to various operational needs during the entire duration of the life cycle. So in Product Life Cycle Costing, an efficient allocation and documentation of all the expenses are carried out which places the business in an advantageous position to absorb future shocks.
In life cycle product budgeting,managers estimate the entire revenue and expenditures required across the entire value chain to meet all the financial challenges in an effective manner. It helps to strategically evaluate and determine pricing decisions and determine whether a product is profitable or not.
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Advantages of Product Life Cycle Budgeting and Costing
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