Which of the Following Is True About New Product Development

question 29

Multiple Choice

Which of the following is true about new product development?

• A)It typically involves dramatic innovations that require extensive customer learning.
• B)It requires an understanding of the customer base and involves creativity.
• C)It works only when it involves long-term research and monitoring.
• D)It involves less risk and ensures a high success rate.

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Definitions:

Actual Cost

The true total amount spent on a project or acquisition, including all relevant expenses and fees.

Market Rate

The prevailing interest rate available in the marketplace for loans, savings, and investments, also reflecting the cost of borrowing money.

Weighted Average Cost

The calculation that takes into account the varying costs of goods and the quantity of each, to determine an average cost.

Preferred Stock

A class of stock that typically has a priority claim on dividends and assets in the event of liquidation over common stock.