Question 1: True / False Qmeations

5.Life cycle costing encourages management to fund a suitable balance between

investment costs and operating expemse:.

6. Target costing may be applied to services that are provided free of charge to

customers, such as costs of call centre handling.

7.

A product is usually most profitable during the growth phase of its life cycle.

B. Life cycle costing is useful for deciding the selling price for a product.