How can iterative design affect the final product's cost?

Iterative design can significantly affect the final product's cost by facilitating early detection of issues and incorporating feedback throughout the development process. This approach allows designers and stakeholders to make incremental improvements and adjustments based on user testing and evaluation. By identifying potential problems or inefficiencies in the initial stages, organizations can avoid costly revisions or production delays later in the process.

Additionally, addressing issues early means that the team can rapidly iterate on solutions, potentially leading to more efficient designs that require fewer resources to produce. This proactive strategy not only enhances the overall quality of the product but can also contribute to lower expenses associated with late-stage changes or fixes that might arise if issues remain undetected until later.

In contrast, while iterative design has the potential to reduce costs, it does not guarantee lower costs in every scenario. Depending on the complexity and nature of the project, iterative design could lead to increased expenditures if not managed effectively. Therefore, while the iterative process is beneficial, it is not accurate to claim that it always leads to a reduced budget or that it has no effect at all on costs.