Which of the Following Would Make Life-Cycle Budgeting Particularly Important

question 201

Multiple Choice

Which of the following would make life-cycle budgeting particularly important to implement?

• A) a very short R&D period with minimal costs but with an emphasis on speed to market
• B) a product that will be brought to market very quickly and will only be offered for a limited time
• C) the development period for a product is long and that the R&D needed and the design activities are costly
• D) a service that will be offered once this year and then eliminated as a result of a proposed sale of a division

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Definitions:

Tax Rate

A proportion or rate at which an individual or business is taxed by the government, often expressed as a percentage.

Dividends Paid

The total amount of money distributed to shareholders from a corporation's earnings.

Retention Ratio

The percentage of net earnings not paid out as dividends but kept by the company for reinvestment.