With Reference to the Five Characteristics of a Product Innovation

question 20

Multiple Choice

With reference to the five characteristics of a product innovation, a product innovation is said to have a greater _____, if it is superior to previous ideas reflected in terms of lower price, physical improvements, or ease of use.

• A) associability
• B) compatibility
• C) relative advantage
• D) observability

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Definitions:

Urban Sales

Sales activities focused on customers located within urban areas, potentially involving strategies tailored to high-density populations.

Unit Variable Expenses

Costs that vary directly with the level of production or sales volume, calculated on a per unit basis.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent and salaries.

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead in the cost of a product.