If life-cycle costs exceed the target cost of a product,managers will strive to reduce
A)the cost of special orders.
B)the level of activities that are non-value-added.
C)product variety.
D)period costs.

Question

Quizplus · Accepted Answer

Managers will strive to reduce the level of activities that are non-value-added because these activities do not add any value to the product but increase the life-cycle costs. By eliminating or minimizing these activities, managers can reduce the costs and bring them within the target cost. The other options (A, C, and D) are not directly related to reducing life-cycle costs.

If Life-Cycle Costs Exceed the Target Cost of a Product,managers