Without New Products,a Firm Can

question 26

Multiple Choice

Without new products,a firm can:

• A) only market to current customers or similar customers.
• B) only diversify into new product lines.
• C) focus on product reincarnation.
• D) increase prices,because they have only a few products.
• E) worry less about competitors' actions.

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Definitions:

Budgeted Sales Price

Projected price at which a product is expected to be sold, used in financial planning and analysis.

Standard Costs

Pre-determined or estimated costs to perform an operation, produce a product, or offer a service, used as a basis for pricing and budgetary control.

Work In Process Inventory

Items that are partially completed in a manufacturing process but are not yet finished goods.

Standard Control Account

An account used to monitor variances between actual costs and standard (expected) costs within an accounting period.