When Introduced in the Late 1970s,the VCR Created New Patterns

question 9

Multiple Choice

When introduced in the late 1970s,the VCR created new patterns of consumer behavior.For example,assuming the user could learn to set the timer,he or she could tape programs to watch at a later time.DVD,a playback only video system,was introduced in the late 1990s.DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs.Which of the following most accurately describes the respective degree of newness of these two global products?

• A)The VCR is a discontinuous innovation;the DVD is a dynamically continuous innovation.
• B)The VCR is a dynamically continuous innovation;the DVD is a discontinuous innovation.
• C)The VCR and DVD are both dynamically continuous innovations.
• D)The VCR and DVD are both discontinuous innovations.
• E)The VCR and DVD are both continuous innovations.

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Definitions:

Useful Life

The estimated period over which an asset is expected to be functional and economically useful.

Commercial Substance

Involves a situation where the future cash flows of a business are expected to change significantly as a result of a transaction.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been expensed since it was put into use.

Recorded Cost

The cost of an asset as it appears in a company's books or financial statements, reflecting the original cost of acquisition.