Which of the Following Statements About Product Lines Is Most

question 271

Multiple Choice

Which of the following statements about product lines is most accurate?

• A)An advantage of a narrow product line is the ability to have a greater gap between price points.
• B)Product lines refer to consumer products;product mixes refer to industrial products.
• C)An advantage of broad product lines is increased likelihood of access to large retail chain distribution.
• D)A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
• E)A broad product line reduces R&D costs.

---

Definitions:

Net Book Value

The value of an asset as recorded on the balance sheet, calculated by subtracting accumulated depreciation or amortization from the asset's original cost.

Depreciation Expense

Distributing the expense of a physical asset over its life expectancy.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Unearned Revenue

Money received by a company for goods or services that have not yet been provided, recorded as a liability until the goods or services are delivered.