Life-Cycle Budget

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Life-Cycle Budget

An estimate of all expenses and revenues a company incurs and derives from a product. The life cycle budget includes all expenses from research and development, marketing, customer services and so forth. It also includes revenues from sales, royalties and other sources. It is calculated from the beginning of a product's research to its estimated date of withdrawal from the market. Life cycle budgets help a company determine whether or not a product is going to be profitable.