Which of the Following Statements Best Explains Why Idea Screening

question 21

Multiple Choice

Which of the following statements best explains why idea screening may be the most important step of new product development?

• A) It increases the number of ideas generated.
• B) It provides an opportunity for the marketer to test the prototype in a simulated market.
• C) It helps forecast the products' sales and profits accurately for a specific period.
• D) It gives research and development team members an opportunity to gather consumer feedback.
• E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

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Definitions:

Reportable Segments

Components of an enterprise about which separate financial information is available and is evaluated regularly by the chief decision-maker in deciding how to allocate resources.

Assets

Economic resources owned or controlled by a business, viewed as having value and expected to provide future benefits to the operations.

Profits

The net income received by a company after deducting all expenses, taxes, and costs.

Unrealized Gain

Profit that has been made on paper from investments but has not yet been converted to cash by selling the asset.