The Decision to Delete a Product Is Never Taken Lightly

question 54

Multiple Choice

The decision to delete a product is never taken lightly because, generally, manufacturers

• A)have offered the product line to other firms for purchase.
• B)have made substantial investments in product development and manufacturing.
• C)have promised consumers they will maintain the product.
• D)have used brand repositioning to improve results.
• E)must meet federal standards when taking products off the market.

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Definitions:

Depreciation Percentage

The rate at which a company depreciates an asset, expressed as a percentage of its total value.

Double-Declining-Balance

An accelerated method of depreciation which doubles the usual rate of depreciation of assets, allowing for faster write-offs.

Units-Of-Output

A depreciation method that allocates the cost of an asset over its useful life based on the units it produces, reflecting the asset's wear and tear more accurately.

Straight-Line

A method of calculating depreciation or amortization by evenly distributing an asset's cost over its useful life.