Which of the Following Is a Benefit of Life Cycle

question 2

Multiple Choice

Which of the following is a benefit of life cycle costing over target costing?

• A) Life cycle costing is less likely to reject a product due to high up-front costs because it considers changes in price and costs over its entire life cycle
• B) Life cycle costing is less expensive to administer than target costing
• C) Products appear cheaper under life cycle costing because it does not consider research and development since this cost occurs prior to production
• D) Life cycle costing focuses only on costs in the product's life cycle; thus eliminating defect and warranty costs often associated with products

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Definitions:

Experimental Drug

A pharmaceutical compound under clinical investigation to assess its safety and effectiveness for human use.

Dosage

The size or frequency of a dose of a medicine or drug that has been officially recommended.

Observational Study

A study in which the researcher observes outcomes without manipulating the study environment or subjects.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by observing and measuring the effect of varying an independent variable.