A Prototype Is a

question 15

Multiple Choice

A prototype is a

• A) miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization.
• B) full-scale operating model of the product or service under development.
• C) sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release.
• D) simulated operating model of the product given to consumers to use in full-scale field testing.
• E) digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.

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Definitions:

Accrued Product Warranty Costs

Costs that have been incurred but not yet paid for product warranties, recognized as liabilities on the balance sheet.

Enacted Tax Rates

The legally approved rates of taxation set by governmental authorities.

Pre-Tax Book Income

Income of a business before the deduction of tax expenses as reported in the financial statements, not necessarily reflective of taxable income.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.