Detailed Financial Projections and Determination If a New Product Could

question 181

Multiple Choice

Detailed financial projections and determination if a new product could be protected with patents or copyright are a part of which stage of the new-product development process?

• A) idea generation
• B) market testing
• C) business analysis
• D) development
• E) commercialization

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Definitions:

Cost Estimation Methods

Techniques used to predict the expenses likely to be incurred in the manufacturing of a product or the execution of a project.

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Pretax Income

The income that a company earns before any taxes are deducted, representing the profitability of the company before government intervention.