US CMA Exam Part 1
Most products have a finite life
The duration may depend on the type of product, nature of the industry, level of competition, effects of technology etc….
The Life Cycle of a product is its value chain
Process by which raw materials are received and value added at every process to create a finished product and sell to customers
Objective: is to deliver maximum value for the least possible total cost and create a competitive advantage
Value Chain model as such was developed by Michael Porter
Costs incurred during the entire life of the product
Include the Design and Development costs, Operating costs, Support costs, Dismantling and Disposal costs ….
Many products incur high nonproduction costs
Life cycle costs are compared with the expected revenues to determine the profitability of a product

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