Which Stage of the New-Product Development Process Is Usually the Most

question 100

Multiple Choice

Which stage of the new-product development process is usually the most expensive for new products?

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

Understand the principle of diminishing marginal utility and its application to consumer choices.

Grasp how consumers maximize utility given their budget constraints.

Recognize the equal marginal utility per dollar spent rule in utility maximization.

Apply the concept of utility maximization to adjustments in consumption when prices change.

---

Definitions:

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, rules, and procedures defined by the professional accounting industry in a specific country.

Capitalize

The process of recording an expenditure as an asset, rather than an expense, thereby spreading the cost over its useful life.

Bargain Purchase Option

A clause in a lease agreement that allows the lessee the option to purchase the leased asset at a price below its expected fair market value.

Executory Costs

Executory costs are the ongoing operating expenses in a lease agreement, such as insurance, maintenance, and property taxes, usually borne by the lessee.