- October 28, 2021 at 10:28 am #639304John1998mMember
- Topics: 62
- Replies: 36
In Lifecycle costing, I have problem with Demand, Sales revenue and Profit at each stage.
1) Development stage:
Demand would be 0
Sales revenue would be 0
Loss is at max at this stage
2) Introduction stage:
Demand increases slowly
so does sales revenue started to increase slowly
Loss would be 0 at this stage
3) Growth stage:
Demand increases rapidly
so does sales revenue started to increase rapidly
so does profit started to increase rapidly
4) Maturity stage:
Demand is at max
so does sales revenue is at max
so does profit is at max
5) Decline stage:
Demand started to decline
so does sales revenue start to decline
so does profit start to declineOctober 28, 2021 at 3:07 pm #639317John MoffatKeymaster
- Topics: 57
- Replies: 51563
What you have written is correct, except that you cannot possibly say that the loss will be zero during the introduction phase. The loss is likely to reduce is all you can say.
Have you not watched my free lectures on this or looked at the illustrative graph in our free lecture notes?
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