Which of the Following Is True of the Product Innovation

question 53

Multiple Choice

Which of the following is true of the product innovation charter (PIC) of a firm?

• A) The PIC is formulated at the end of the new products process.
• B) The formulation of the PIC follows the phase of opportunity identification and concept generation.
• C) The PIC precludes the practice of having unwanted proposals eat up valuable development funds before they are detected.
• D) The PIC tends to eliminate less product ideas than any of the other evaluation techniques.

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Definitions:

Quantitative Decision Rule

An analytical procedure or guideline used to make decisions based on numerical data and mathematical calculations.

Capital Expenditure

A financial outlay made by a company to acquire, maintain, or improve physical assets such as property, plants, and equipment.

Cash Budgeting

The process of estimating future cash inflows and outflows to determine a company's short-term financial health and liquidity.

Payback Period

The length of time required to recover the initial outlay on an investment based on its expected cash flows.