A Concept Test Is an

question 131

Multiple Choice

A concept test is an

• A)internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.
• B)external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product.
• C)internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item.
• D)in-house computer simulation of the new product that closely resembles the actual product to forecast sales.
• E)in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan.

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Definitions:

Recoverable Amount

The higher value between an asset's fair value minus costs of disposal and its value in use.

Carrying Amount

The amount at which an asset or liability is recognized on the balance sheet after deducting any accumulated depreciation, amortization, or impairment.

Fair Value

An estimate of the price at which an asset or liability would be traded between knowledgeable, willing parties in an arm's length transaction.

Costs To Sell

The direct costs attributable to the disposition of an asset, excluding finance costs and income taxes.