Market Testing Refers to

question 22

Multiple Choice

Market testing refers to

• A)exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
• B)making sales and profit projections on prototype products to make go-no-go decisions.
• C)conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.
• D)independently run comparison tests with similar products currently in the marketplace to determine which one performs best.
• E)conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned.

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Definitions:

Net Income

Represents the earnings of a company after subtracting all costs and expenses from total revenue, indicating the company's financial health.

Accrued Liabilities

Expenses that have been incurred but have not been paid at the end of the accounting period.

Indirect Method

A accounting technique used to prepare the cash flow statement, converting net income into net cash flow from operating activities by adjusting for non-cash items and changes in working capital.

Net Income

Total earnings of a company after all expenses and taxes have been deducted from total revenue.