In Assessing Which New Features to Add to a Product,a

question 143

Multiple Choice

In assessing which new features to add to a product,a company must weigh each feature's ________ to customers versus it's ________ to the company.

• A)cost;line extension
• B)cost;service
• C)value;cost
• D)service;line extension
• E)equity;cost

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Definitions:

Activity-based Costing

A cost allocation technique that assigns overhead and indirect costs to relevant products and services based on the activities they demand.

Machining

The process of shaping, cutting, or altering a material using machines or tools, often used in the manufacturing of parts or components.

Activity-based Costing

Activity-based costing (ABC) is a method of assigning overhead and indirect costs to specific products or activities based on their usage.

Machining

The process of cutting, shaping, or removing material from a workpiece using machines or tools, often for manufacturing purposes.