When a Company Begins Marketing a New Product Line in Addition

question 1

Multiple Choice

When a company begins marketing a new product line in addition to its existing product lines,it has done which of the following?

• A)expanded the length of the product line
• B)expanded the width of the product mix
• C)expanded the depth of the product mix
• D)expanded the width of the marketing mix
• E)used a filling-out strategy

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Definitions:

Product Margins

The difference between the selling price of a product and the cost of goods sold, representing the profit made on each product.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.

Activity Cost Pools

A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measure of the amount of time a machine is operated for the purpose of producing goods.