1. Which of the following is not one of the steps in the life cycle of a product?

a. manufacturing, inspecting, packaging and warehousing

b. research and development
c. purchasing and receiving
d. marketing, promotion and distribution
C

2. In comparison to the Cost Life Cycle of a product, the Sales Life Cycle of a product is
a. much shorter
b. much longer
c. exactly parallel, except that it is expressed in sales terms
d. different because it represent a sequence of phases relating to sales, not production
D

3. In each of the phases of a product’s sales life cycle, management’s focus will be:
a. parallel
b. on the next phase as well as the current one
c. different
d. undifferentiated
C

4. Generally, firms will price a product more competitively at which stage of the products sales life
cycle?
a. Product Introduction
b. Growth
c. Maturity
d. Decline
D

5. Because of the four stages of a product’s sales life cycle has a different emphasis, the cost
management system will be expected to provide data that is:
a. different at each stage
b. common to all stages
c. lesser in amount in the later stages
d. lesser in amount in the early stages
A

6. The sequence of activities within the firm which begins with research and development, followed
by design, and manufacturing, marketing/ distribution, and customer service is the
a. sales life cycle
b. target life cycle
c. market life cycle
d. cost life cycle
D

7. The sequence of phases in the product or service’s life in the market – from the introduction of the
product or service to the growth in sales and finally maturity, decline and withdrawal from the
market is the
 a. sales life cycle
b. target life cycle
c. market life cycle
d. cost life cycle
A

8. Which one of the following is a downstream cost?

a. research and development
b. packaging
c. purchasing
d. prototyping
B

9. Which one of the following industries has high upstream costs?

a. retail
b. perfumes
c. cosmetics
d. computer software
D

10. Which of the following is not a critical success factor at the design stage?
a. improved ear of manufacture
b. reduced tome to market
c. reduced expected service costs
d. enhanced quality
D

11. Which one of the following is not a common design method?

a. concurrent engineering
b. design engineering
c. templating
d. prototyping
B

12. Sales begin to grow rapidly and product variety increases in:
a. phase three
b. phase two
c. phase five
d. phase four
B

13. Sales continue to increase but at a decreasing rate is

a. phase three
b. phase two
c. phase five
d. phase four
A
14. Sales begin to decline, as does the number of competitors, in:
a. phase three
b. phase two
c. phase five
d. phase four
D

15. What is a management technique used to identify and monitor the costs of product or service
throughout its life cycle?
a. Target costing
b. Life cycle costing
c. Theory of Constraints
d. Absorption costing
B