Which of the Following Is NOT a Reason for the Increasing

question 76

Multiple Choice

Which of the following is NOT a reason for the increasing difficulty of evaluating strategies?

• A) Product life cycles are longer.
• B) Domestic and world economies are less stable.
• C) Product development cycles are shorter.
• D) Technological advancement is more rapid.
• E) Change is occurring more frequently.

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Definitions:

Period Costs

Expenses that are not directly tied to production activities and are expensed in the period they are incurred, such as administrative salaries and marketing costs.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as materials and labor directly involved in production.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and contribute to profit.

Incremental Manufacturing Cost

The additional costs incurred to produce an additional unit of product, including materials, labor, and overheads.