In the Bass Forecasting Model, Parameter M

question 12

Multiple Choice

In the Bass forecasting model, parameter m

• A)measures the likelihood of adoption due to a potential adopter being influenced by someone who has already adopted the product.
• B)measures the likelihood of adoption, assuming no influence from someone who has already adopted the product.
• C)refers to the number of people estimated to eventually adopt the new product.
• D)refers to the number of people who have already adopted the new product.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs and treats fixed manufacturing overhead as an expense of the period.

Period Cost

Expenses that are not directly tied to production activity and are expensed in the period in which they are incurred.

Variable Costing

A technique in accounting that encompasses only costs that vary with production (including direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.

Period Cost

Expenses that are not directly tied to the production of goods and are instead associated with time periods, such as administrative salaries.