A Leading Snowboard Competitor Has Suggested a New Material to the Manufacturer

question 32

Multiple Choice

A leading snowboard competitor has suggested a new material to the manufacturer, who trials the new product and then introduces it into the market. What is this an example of?

• A) Market pull
• B) Innovation diffusion
• C) Process innovation
• D) Technology push

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods or the provision of services, such as wages for factory workers or technicians.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, aside from the costs of direct labor and direct materials.

Direct Materials

Raw materials directly traced and included in the finished product.

Master Budget

A comprehensive financial plan that consolidates various detailed budgets within a company for a specific period.