The Purpose of the Screening Stage in a New-Product Development

question 17

Multiple Choice

The purpose of the screening stage in a new-product development process is to:

• A)refine the promotion campaign to be used with the new product.
• B)eliminate ideas that are inconsistent with an organization's new-product strategy.
• C)identify and eliminate concept tests that might lead to duplication of experiments.
• D)set a limit on the number of members allowed to assess the viability of a new-product idea.

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Definitions:

Sales On Account

Sales made on credit, where the buyer is allowed to pay at a later date.

Cost Of Goods Sold

The direct expenses incurred in the production process of goods a company retails, consisting of materials and labor.

Acid-Test Ratio

A financial metric that measures the ability of a company to pay its short-term obligations with its most liquid assets.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment in time, showing assets, liabilities, and owners' equity.