Which of the Following Is NOT One of the Benefits

question 49

Multiple Choice

Which of the following is NOT one of the benefits to a firm of new product development?

• A) reduced costs of production.
• B) satisfying the changing needs of current and new customers.
• C) avoiding market saturation from products that have been on the market for a long time.
• D) creating diversification and reducing risk.
• E) keeping up in a market where sales come mostly from new products.

---

Definitions:

Fixed Overhead Budget

A forecast of the fixed costs that a company expects to incur over a certain period, helping in planning and controlling expenses.

Fixed Overhead Volume

The portion of fixed overhead costs that reflect the difference between actual production volume and the standard or expected production volume.

Variable Overhead Rate

The rate at which variable overhead costs are applied to production, often based on direct labor hours or machine hours.

Overhead Efficiency

Overhead efficiency refers to a measure of how effectively a business manages its overhead costs relative to its operational productivity or revenue generation.