Which of the Following Statements Best Explains Why Idea Screening

question 21

Multiple Choice

Which of the following statements best explains why idea screening may be the most important step of new product development?

• A) It increases the number of ideas generated.
• B) It provides an opportunity for the marketer to test the prototype in a simulated market.
• C) It helps forecast the products' sales and profits accurately for a specific period.
• D) It gives research and development team members an opportunity to gather consumer feedback.
• E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

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Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.

Factory Overhead Costs

All indirect costs associated with manufacturing, including utilities, rent, and salaries for employees not directly involved in production.

Work in Process

Inventory that is in the production process but is not yet completed, representing a stage between raw materials and finished goods.

Direct Materials

Raw materials that are directly identifiable and assignable to the production of goods.