Once a Good or Service Nears the End of Its

question 38

Multiple Choice

Once a good or service nears the end of its product life cycle, the firm recognizes that

• A) it is impossible to revert to an earlier stage of the model.
• B) it can return to an earlier stage through creative marketing.
• C) it will enjoy relatively high profits.
• D) marketing dollars spent now will provide little benefit.

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Definitions:

Weighted-Average Method

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Equivalent Units

A concept in cost accounting used to express the amount of work done on partially finished goods in terms of fully finished units.

Conversion

The process of changing or converting one form, unit, or value to another, applicable in various contexts such as manufacturing, finance, and digital media.

Equivalent Unit

A measurement used in cost accounting to represent the amount of work done on partially finished goods, expressed in terms of fully completed units.