A(n) ________ Strategy Involves Making Additional Versions of a Product

question 61

Multiple Choice

A(n) ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

• A) market penetration
• B) geographic expansion
• C) improving an existing product or service
• D) strategic alliance
• E) product line extension

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Definitions:

Allowance Method

An accounting technique used to account for bad debts, where an estimated amount is deducted from accounts receivable to reflect possible non-collection.

Bad Debts

are amounts owed to a company that are considered uncollectible, leading to a financial loss.

Percentage of Sales

A financial analysis tool used to forecast future expenses, based on a fixed percentage of the total sales.

Allowance for Doubtful Accounts

A contra asset account on a company's balance sheet that estimates the amount of receivables that may not be collected.