A Company That Does Not Want to Add to the Product

question 6

Multiple Choice

A company that does not want to add to the product lines in its portfolio would be most likely to select which of the following options?

• A) multibranding
• B) bundling
• C) brand extension
• D) brand stretching
• E) line extension

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Definitions:

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.

Equivalent Units

A concept used in cost accounting to standardize heterogeneous units of production, making them quantitatively comparable.

Equivalent Units

Equivalent units are used in cost accounting to represent the amount of work done during a period, expressed in terms of fully completed units.

Direct Materials

These are the raw materials that are directly traceable and integral to the finished product in the manufacturing process.