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:

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded for an asset since its acquisition.

Recognized Gain

The amount of profit that is reported for accounting or tax purposes, realized upon the sale or exchange of an asset.

Financing Charges

Costs associated with borrowing money, including interest, fees, and other charges.

EBIT

A financial metric representing a company's profit before deducting expenses for interest and income taxes.