Scenario 12.1 Use the Following to Answer the Questions

question 26

Multiple Choice

Scenario 12.1
Use the following to answer the questions.
Cheetos Fat-free Crunchies is a product developed through advanced technology.Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer.Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.
About 18 months later,a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat,and that they contained preservatives and additives.Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people.To save the product,Cheetos reduced the remaining fat to 0 grams,took out the preservatives,and improved the taste.
-Refer to Scenario 12.1.Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers.This new Cheetos brand of crackers would most likely be an example of

• A)a product modification.
• B)a line extension.
• C)a quality modification.
• D)a functional extension.
• E)an aesthetic modification.

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Definitions:

Correcting Entries

Entries to correct errors made in recording transactions.

Salary Allowance

A predetermined amount paid to employees, which may be part of their salary package, often for specific purposes or expenses.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profitability.

Capital Balances

The amount of equity owned by investors or owners in a company or fund.