Chapter 14-6 Flashcards
involve eestimating and tracking all costs and revenues from a products intitial R&D to its final customer service
life cycle budgeting and costing
automobile companies: 12-15 years
pharmaceutical companies:15-20 years
banks: 10-20 years
personal computer: 2-3 years
product life cycles
estimates revenues and costs across the entire value chain over the products life
life cycle budgeting
accumulates and tracks these costs over the same period
life cycle costing
is crucial for evaluation pricing decisions,especially when the development perio for R&D and design is long and costly
life cycle budgeting
the european union uses a ______ system, setting a cap on carbon pollution and allowing companies to buy and sell pollution quotas
cap and trade system
defines standards for environmental, social, and governance performance, which vary across industries based on financial impact and user interest
SASB
in the oil and gas industry, relevant _____ standards include greenhouse gas emissions and water management, while in the technology industry, they include life cycle impacts and energy management
ESG
econompass the total costs a customer incurs to acquire, use, maintain, and dispose of a product or service
customer life cycle costs
