The Screening and Evaluation Stage of the New-Product Process Involves

question 115

Multiple Choice

The screening and evaluation stage of the new-product process involves

• A)internal and external evaluations of new-product ideas.
• B)product selection and budgeting projections.
• C)business and cost analyses.
• D)patent searches and environmental scanning.
• E)idea selection and prototype development.

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Definitions:

Pretax Income

The amount of income that a company earns before any taxes are deducted.

Variable Cost

Costs that vary in direct proportion to changes in the level of production or sales activity.

Fixed Costs

Costs that do not fluctuate with the level of production or sales activity, such as rent, salaries, and insurance premiums, remaining constant regardless of business volume.

Break-Even

The point at which total revenues equal total costs, leading to neither a profit nor a loss.