Question 1
Which of the following best describes customer life-cycle costs?
◦ costs incurred by the selling company to satisfy the customer.
◦ costs to the customers for buying and using a product.
◦ same as the selling life-cycle prices.
◦ replacement costs of using a product or service.
Question 2
Which of the following would make life-cycle budgeting particularly important to implement?
◦ a very short R&D period with minimal costs but with an emphasis on speed to market
◦ a product that will be brought to market very quickly and will only be offered for a limited time
◦ the development period for a product is long and that the R&D needed and the design activities are costly
◦ a service that will be offered once this year and then eliminated as a result of a proposed sale of a division