The Life Cycles of Many Products Are Becoming Shorter

question 61

Multiple Choice

The life cycles of many products are becoming shorter

• A)causing companies to recognize that it may be more advantageous to confront,rather than compete with,the competition.
• B)making products in the maturity stage of their life cycle the basis on which firms expect growth to be generated.
• C)so companies spend less and less on product design and development because products will not last as long as previously.
• D)meaning that tools such as benchmarking and target costing become less important in adapting to the competitive environment.

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Definitions:

Indirect Labor

Labor costs for employees who assist in the production process but are not directly involved in the creation of the final product, such as supervisors and maintenance workers.

Indirect Materials

Supplies used in the production process that cannot be directly traced to specific products, such as lubricants for machinery.

U.S. Economic Activity

The total production, distribution, and consumption of goods and services within the United States, reflecting the health of the nation's economy.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including costs of materials, labor, and overhead.