Using the life-cycle costing approach,salespeople can demonstrate that:
A) a product in the decline stage of its life cycle will have little,if any,service.
B) a product with a higher initial cost will have lower overall costs.
C) operational costs do not change over the lifetime of capital equipment.
D) a product in the introductory stage of its life cycle will have more problems than one in a later stage.
E) operational costs actually decrease over the lifetime of capital equipment due to increased familiarity.

Question

Quizplus · Accepted Answer

Life-cycle costing takes into account all costs associated with a product or equipment over its entire lifespan, including initial purchase cost, maintenance, repairs, and disposal. By demonstrating that a product with a higher initial cost may have lower overall costs, salespeople can show that investing in a higher-quality, more durable product can ultimately save money in the long run. Options A, C, D, and E are all incorrect as they do not accurately reflect the principles of life-cycle costing.

Using the Life-Cycle Costing Approach,salespeople Can Demonstrate That