There Is No Set Time That a Product Takes to Move

question 308

Multiple Choice

There is no set time that a product takes to move through its life cycle. But as a rule,

• A) services are highly affected by social trends while tangible goods are not.
• B) consumer products have shorter life cycles than business products.
• C) business products typically show very short maturity stages.
• D) technological change tends to lengthen product life cycles.
• E) product life cycles are longer for ideas than for services.

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Definitions:

Mortality Rate

Mortality rate, often expressed per thousand or per hundred thousand, refers to the frequency of deaths in a given population during a specific period of time.

Unrecognized Net Gain Or Loss

Refers to gains or losses that have been incurred but are not reported in the financial statements because they are unrealized.

Vested Benefits

Employee benefits, such as pension plans or stock options, that one has earned the right to receive and cannot be forfeited.

Accrual Concept

An accounting methodology that records revenues and expenses when they are incurred, regardless of cash flow.