A Discontinuous Innovation Is a Product That

question 254

Multiple Choice

A discontinuous innovation is a product that

• A) disrupts consumers' normal routine but does not require totally new learning.
• B) requires no new learning by consumers.
• C) is not purchased by innovators and early adopters.
• D) initiates obsolescence of a product class.
• E) requires consumers to learn entirely new patterns of behavior and product usage.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate.

Scrap Value

An estimated calculation of what an asset will be worth at the time it is sold, after it is no longer useful.

Sum-Of-The-Years-Digits

An accelerated method of depreciation which totals the digits of an asset's useful life and allocates the cost based on a fraction of those digits.