In the New Products Process, Market Testing Should Typically Be

question 17

Multiple Choice

In the new products process, market testing should typically be carried out:

• A) in the concept stage as the idea needs to be tested for practicality.
• B) before the project evaluation stage begins.
• C) as soon as techniques that will tell us what we need to know are found.
• D) once the ideation phase begins.

---

Definitions:

Prime Costs

The sum of expenses for the raw materials and labor directly involved in the manufacturing of a product.

Conversion Costs

The aggregate expenditure on direct labor and manufacturing overheads used for turning raw materials into final products.

Frosting

In a culinary context, a sweet and fluffy coating or filling, usually made from sugar, butter, and flavorings, used to decorate or fill cakes and pastries. If referring to a financial term, there is no widely recognized definition fitting "frosting."

Prime Costs

The direct costs directly attributable to the production of goods, including direct materials and direct labor.