Life Cycle Analysis

Tags

finance

A [see page 34, life cycle] is the duration of a project, product or companies existence.

This is most useful for pricing products with a dynamic environment, where absorption-costing isn't relevant. A dynamic environment includes R&D with high initial cost per unit, staff training, [see page 35, etc]. See [see page 36, explanation] of how the price will fluctuate.

See also [see page 39, discounting] early or late into life cycle to guarantee product-sales.