When Discussing Solutions for Increasing Profitability of a New Product

question 75

Multiple Choice

When discussing solutions for increasing profitability of a new product, Dale raises a concern that one of the alternatives may negatively impact sales for other products. Dale's concern demonstrates a focus on the ________ of the alternative.

• A)sustainability
• B)practicality
• C)legality
• D)ethicalness
• E)functionality

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Definitions:

Order of Magnitude

A classification of scale or size of a quantity, where each class is ten times greater or smaller than the one before.

Gross Method

An accounting practice where purchases are recorded at the total invoice cost without deducting any purchase discounts.

Net Method

An accounting approach where discounts for early payment are assumed to be taken and thus are deducted from the cost of purchases.

Accounts Payable

Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received.