Final answer:
The term for the deferred cost of work that was not completed earlier in the product's life cycle is called sunk cost. Sunk costs are costs that have already been incurred and cannot be recovered.
Step-by-step explanation:
The term for the deferred cost of work that was not completed earlier in the product's life cycle is called sunk cost. Sunk costs are costs that have already been incurred and cannot be recovered. In the context of product development, sunk costs refer to the money and resources invested in creating and launching a product that cannot be recovered if the product does not perform well.
For example, if a company invests a significant amount of money in developing a new product but later realizes that the product is not meeting customer expectations or market demand, the cost of the development work already completed becomes a sunk cost. The company cannot recoup that expenditure, even if they decide to discontinue the product. Therefore, it is important for businesses to consider future projections and potential for success when making decisions, rather than being influenced solely by sunk costs.