A Manufacturer with a Product in the Decline Stage of the Product

question 31

Multiple Choice

A manufacturer with a product in the decline stage of the product life-cycle might decide to ________ if it has has major customers that buy the product in conjunction with their other products.

• A)harvest the product
• B)maintain the product without change
• C)drop the product
• D)search for replacements
• E)delay planning

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the amount of finished goods they represent.

Accounting Period

A specific time period for which financial statements are prepared, such as a month, quarter, or year.

First-In, First-Out

Another explanation: An accounting principle for valuing inventory where older stock is sold or used first before newer inventory.

In Process

Relating to materials or products that are in the course of being manufactured but are not yet completed.