When Hasbro Comes Up with an Idea for a New

question 156

Multiple Choice

When Hasbro comes up with an idea for a new toy, it needs to ensure that the children who play with the toy will not choke on any of its parts and that the toy in general will not be a hazard to the children who will be using it. In what stage of the new-product development process will these safety checks occur?

• A)idea generation
• B)product development
• C)idea screening
• D)product launch
• E)test marketing

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Definitions:

Residual Value

The estimated value that an asset will have at the end of its useful life, after factoring in depreciation or amortization.

Diminishing-Balance Method

A method of accelerated depreciation where an asset loses value by a fixed percentage each year over its useful life.