APICS Certified Supply Chain Professional (CSCP) — Question 374
Total annual profit typically is highest at what stage of the product life cycle?
Answer options
- A. Growth
- B. Maturity
- C. Decline
- D. Introduction
Correct answer: B
Explanation
The correct answer is B, Maturity, because during this stage, sales peak and profit margins are typically at their highest due to established market presence and brand loyalty. In contrast, Growth (A) sees increasing profits but not yet at the maximum; Decline (C) results in decreasing profits, and Introduction (D) often incurs losses due to initial costs.