To Analyze the Market to See Whether You Should Go

question 158

Multiple Choice

To analyze the market to see whether you should go forward with the development of a new product, you should answer all of the following questions except:

• A)why will customers buy the product from me
• B)who would my customers be
• C)Is this product something I want to sell
• D)How will customers benefit from my product

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Definitions:

Absorption Costing

An accounting method that includes all direct costs and overhead costs related to the production of a specific product.

Product Costs

Expenses directly attributable to the creation of a product, including material, labor, and overhead costs.

Variable Costing

A costing method that only includes variable production costs in product costs, treating fixed manufacturing costs as period expenses.

Product Costs

Costs that are directly tied to the production of goods, including raw materials, direct labor, and manufacturing overhead.