Firms That Create New Products or Services Are Often Not

question 32

Multiple Choice

Firms that create new products or services are often not the ones that successfully market them. The reason is that:

• A)The capabilities needed for invention are different and even conflict with those required for commercialization
• B)There is a connection between the stage of the industry life cycle and the age of firm
• C)Large companies steal their ideas.
• D)The innovators have shifted their strategic orientations to different products or services

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Definitions:

Product Cost

Refers to the total expenses incurred to manufacture a product, including direct labor, direct materials, and manufacturing overhead.

Checkout Clerk

An employee who is responsible for handling the final processing of transactions at the checkout counter of a retail store, including customer payment and bagging of items.

Selling Expense

Expenses directly related to the selling of products or services, such as advertising, sales commissions, and promotional materials.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling and administrative expenses.