- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi ken, i m just confused about this sentence in Sberry D18 exam question-“It aims to keep each product in production for at least 18 months so that it
can recover the high cost of product development”.
What does it actually mean?Thanks
Production development will usually include items such as research and development and the production of items such as moulds which are needed for the new product. These costs are paid up front and often are large. The company hopes that sales of the product will even ally recoup the costs, but the more of the product made and sold, the greater the chance of initial cost recovery (and also the lower development cost per unit will be).
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.