Frito Lay Holds a Contest for Customers to Submit Ideas

question 52

Multiple Choice

Frito Lay holds a contest for customers to submit ideas for new flavours of Lays potato chips. Which phase of product development does this represent?

• A) prototyping
• B) product development/testing
• C) product analysis
• D) idea generation

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Definitions:

Work in Process

The inventory account that records products in production but not yet completed.

Property, Plant, and Equipment

Long-term tangible assets owned by a business that are used in producing goods or providing services.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark to measure actual performance against.

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services.