An Organization Launched a New Product in the Market

question 7

Multiple Choice

An organization launched a new product in the market. It offered a free trial of the basic model to gain widespread initial use, after which users were offered a nonfree premium version of the same product. Which of the following strategies is used by the company in this case?

• A)A blue ocean strategy
• B)A cross-sell strategy
• C)A third-party pay strategy
• D)A bundling strategy

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Definitions:

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost is greater than the actual overhead incurred.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold to customers.

Job Cost System

An accounting system used to track costs specifically by job or order, collecting material, labor, and overhead costs.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold.