To Estimate Replacement Sales, Management Must Research the Product's ________

question 23

Multiple Choice

To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on.

• A) survival-age distribution
• B) life-cycle ratio
• C) obsolescence rate
• D) business turnover ratio
• E) product-performance usage

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Definitions:

Indirect Materials

Materials used in the production process that do not directly become part of the finished product.

Manufacturing

The procedure of changing basic materials, components, or elements into end products that align with a customer’s needs or criteria.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are a significant part of its cost.

Secondary Materials

Materials used in the production process that are not the primary raw materials.