Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
PLC Main Page | PLC Discussion Questions
| Graduate Management Accounting Course
1. In the literature of product life cycle management, the term technological risk refers to
d. losses related to research and development costs.
2. In the literature of product life cycle management, the term market risk refers to
c. losses related to declining market share for companies that are not technological leaders.
3. Forward pricing refers to pricing products based on the expected product costs during the which stage of the product life cycle?
c. maturity.
4. Which of the following is more closely related to the learning curve?
b. dynamic economies of scale.
5. Approximately what percentage of a product’s life cycle costs are established in the conception, design and development stages?
d. over 80.
6. The portfolio concept related to investment management and product life cycle management
e. a., b. and c.
7. Forward pricing refers to
c. Establishing prices on new products below the initial unit cost to discourage competitors from entering the market.
8. Which of the product life cycle production stages are typically evaluated in traditional cost accounting control systems?
d. production.
9. From the marketing life cycle perspective, a company’s profits usually peak during the
c. maturity stage.
10. Which of the following is (are) compatible with the life cycle concept?
b. Employee empowerment.
11. Conceptually, whole life product costs end when
d. the externality costs to society & the environment end.
12. The greatest opportunity for product life cycle cost reductions are in the
b. design stage.
13. Which of the following costs are not considered in product life cycle management?
e. none of the above.
14. What is the main objective of product life cycle analysis from the producer's perspective?
b. maximize life cycle profit.
15. What is the main objective of product life cycle analysis from the customer's perspective?
d. cost vs. benefit.
16. What is the main objective of product life cycle analysis from society's perspective?
a. minimize life cycle externalities.
17. What is the producer's strategic objective at the startup and production stage of the product life cycle?
c. sales growth.
18. Target costing is most applicable to which stages in the product life cycle?
a. design and development.
19. In product life cycle management, which costs are emphasized in design and development?
e. a., b. and c.
20. Companies have been reluctant to use product life cycle management concepts for which of the following reasons?
e. a., b. and c.
Product Life Cycle MC Questions