A Product Line Extension Strategy Involves Making Additional Versions of a Product

question 17

True/False

A product line extension strategy involves making additional versions of a product so that it will appeal to a different clientele or making related products to sell to the same clientele.

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Definitions:

Cost of Goods Sold

The immediate expenses linked to the creation of products that a company sells.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Work in Process

Inventory that includes the cost of raw materials, labor, and manufacturing overhead for products that are in various stages of production but not yet complete.

Finished Goods

Finished goods that are prepared and available to be bought by customers.