Which issue did Dolphini flag as causing costs to be underestimated?

• A. Underestimating labor costs
• B. Ongoing investment in product development to fix issues
• C. Overestimating market demand
• D. Not budgeting for marketing

Answer: (B)

The idea being tested is how costs can creep up because work continues after the product is released. Dolphini pointed to ongoing investment in product development to fix issues as the driver of underestimated costs—when a company has to keep spending to address bugs, improve features, and refine the product after launch, those extra activities weren’t part of the original budget. This post-launch work adds time, resources, and expenses that weren’t anticipated, making the initial cost estimates too low.

While underestimating labor costs or not budgeting for marketing could also affect finances, they don’t capture the persistent, post-release expenditures that come from fixing and improving the product. Overestimating market demand mainly affects revenue expectations rather than the immediate cost base.