Innovators Are a Critical Group of New Product Adopters Because

question 102

Multiple Choice

Innovators are a critical group of new product adopters because they

• A) are the major source of innovation.
• B) act as reverse engineering consultants.
• C) help with test marketing.
• D) help the product gain market acceptance.
• E) extend the product life cycle.

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not change with the level of production activity, such as salaries of managers, depreciation of factory equipment, and utility costs of the factory.

Absorption Costing

A product costing technique that assigns all costs of production (both variable and fixed) to the product, including overheads, to calculate its full cost.