Page 186 - Microsoft Word - 00 ACCA F2 Prelims.docx

Chapter 11

There are a number of factors that need to be managed in order to maximise a
product’s return over its lifecycle:

Design costs out of the product: around 70% of a product costs are
often incurred at the design and development stage of a product’s
life.

Minimise the time to market: make a profit before competition
increases.

Maximise the length of the life cycle itself: the longer the life cycle,
the greater the profit that will be generated.

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