All of the Following Are Benefits of New Product Development

question 1

Multiple Choice

All of the following are benefits of new product development to a firm except

• A) reducing the costs of production.
• B) satisfying the changing needs of current and new customers.
• C) avoiding market saturation from products that have been on the market for a long time.
• D) creating diversification and reducing risk.
• E) keeping up in a market with short product life cycles where sales come mostly from new products.

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Definitions:

Goods Manufactured

The completed items that are ready for sale or use, produced by a manufacturing process during a specific accounting period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Selling Expenses

Selling expenses are costs associated with the marketing and sale of products or services, including advertising, sales commissions, and retail space rental.

General And Administrative Expenses

Operating expenses not directly tied to production, including salaries of executives, office supplies, and utilities.