Battery Maker Duracell Introduced a New Product Called the Duracell

question 167

Multiple Choice

Battery maker Duracell introduced a new product called the Duracell Powermat, which is a wireless charging pad for mobile devices. Because of the perceived fit with its other products, this new product was received well by consumers despite being in a different product category. This innovation strategy is known as a

• A) brand extension.
• B) radical invention.
• C) product line extension.
• D) disruptive innovation.
• E) product accumulation.

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Definitions:

Cost Flow Assumption

An accounting method that determines the value of remaining inventory and the cost of goods sold, such as FIFO or LIFO.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some numbers more than others.

FOB Shipping Point

This term indicates that the buyer is responsible for the goods and their shipping costs as soon as the goods leave the seller's premises.