Relevance and Application of the Product Life Cycle Concept in Budgeting
Company and business unit budgets often lend financial expression to strategy, inspire managers to attain generally understood targets and offer a logical framework for the analysis of outcomes. On the other hand, many companies suffer from badly conceived or incompetent budgeting processes which do not inspire accomplishment of targets and are of little value for operational management (Corporate Budgeting, n.d.).
Life cycle budgeting comprises approximations of a product's revenues and expenses over its complete life cycle starting with research and development, going through the introduction and growth stages, into the maturing stage, and in conclusion into the harvest or decline stage. Life cycle budgeting adopts a life cycle approach. It is planned to account for the expenses at all stages of the value chain. This knowledge is significant for pricing choices because revenues must cover expenses acquired in each stage of the value chain, not just manufacturing. Life cycle budgeting highlights the associations amid costs acquired at dissimilar value chain stages, for instance, condensed design expenses on future customer service costs (Siegel and Shim, 2006).
A product's life cycle (PLC) can be separated into a number of stages characterized by the income made by the product. The first stage is known as the introduction phase. When the product is first brought to market, sales will be low until consumers become conscious of the product and its benefits. A number of companies may announce their product prior to it is introduced, but such announcements also alert rivals and take away the...
The successful adaptation of life cycle costing to environmental accounting opens the door for the application of life cycle costing techniques to other emerging areas of managerial accounting. This paper will examine the usefulness of life cycle costing in the context of not only its existing uses but with respect to potential future uses as well. It is expected that this analysis will conclude that life cycle costing is
Life-Long Learning In discussing the strategies outlined in several of Malcolm Knowles books, one can clearly recognize adult learning theory as separate from traditional theories in education. In his book, Andragogy in Action, Knowles accurately predicted that by the end of the last century, education would become almost mobile as adults require educational resources that do not uniformly take place in buildings and on campuses but in places, at times and
I have always thought of myself as fairly outgoing, and being labeled as an introvert seemed strange to me. When I though about it, though, I realized that the test was (of course) fairly accurate in this assessment; I even recalled a few individual items on the test that proved this point -- my need to "reenergize" with some alone-time after hanging out with friends for awhile, or my
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RIM Discuss this product in terms of its repositioned target market demographics using U.S. Census Data. In regards to U.S. Census Data, the target market demographic show promise. The repositioned product will focus on high level and medium income level people. These individuals tend to be high lifestyle and business professionals. The product is full of applications and latest operating system that is helpful for professionals and other business persons to accomplish
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