Team-Based New Product Development Encourages Employees of All Departments to Work

question 88

True/False

Team-based new product development encourages employees of all departments to work within the roles and boundaries of their individual departments before combining the results of their efforts at the commercialization stage.

---

Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted, but before taxes and interest are deducted.

Variable Costing

An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and inventory valuation.

Absorption Costing

A method of accounting in which all costs of manufacturing, both direct and indirect, are treated as product costs, regardless of whether they vary with output level.

Net Operating Income

The total income of a company after deducting operating expenses but before interest and taxes.