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

question 99

Multiple Choice

Using the life-cycle costing approach, salespeople can demonstrate that:

• A)a product in the decline stage of its product 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 life time of capital equipment.
• D)a product in the introductory stage of its product life cycle will have more problems than one in a later stage.
• E)operational costs actually decreased over the life time of capital equipment due to increased familiarity.

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Definitions:

Depository Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Federal Home Loan Bank Board

A now-defunct U.S. government agency that oversaw the Federal Home Loan Banks, which were created to support home mortgage lending and community investment.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, as dictated by central banking authorities.

Excess Reserves

These are bank reserves held in excess of what is required by regulations, which can be lent out to generate income.