The Process of Dismantling and Inspecting a Competitor's New or Revised

question 33

Multiple Choice

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:

• A)design by imitation.
• B)product analysis.
• C)reverse engineering.
• D)benchmarking.
• E)disassembly.

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Definitions:

Cost Method

An accounting method used to value an investment, based on the cost to acquire it plus any additional investments or deducting any reductions.

Impairment Loss

A reduction in the book value of an asset when its market value falls below its carrying amount on the balance sheet.

Straight Line Amortization

An approach to systematically allocate the cost of an intangible asset throughout its period of usefulness.

Fair Value Enterprise

An approach to valuing a company based on the current price at which its assets or services could be sold or settled between knowledgeable, willing parties in an arm's length transaction.