Scenario 12.1 Use the Following to Answer the Questions

question 26

Multiple Choice

Scenario 12.1
Use the following to answer the questions.
Cheetos Fat-free Crunchies is a product developed through advanced technology.Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer.Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.
About 18 months later,a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat,and that they contained preservatives and additives.Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people.To save the product,Cheetos reduced the remaining fat to 0 grams,took out the preservatives,and improved the taste.
-Refer to Scenario 12.1.Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers.This new Cheetos brand of crackers would most likely be an example of

• A)a product modification.
• B)a line extension.
• C)a quality modification.
• D)a functional extension.
• E)an aesthetic modification.

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Definitions:

Firm's Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Generally Accepted Accounting Principles

A collection of commonly followed accounting rules and standards for financial reporting.

CRA

CRA can refer to a Credit Rating Agency, which is an organization that assigns credit ratings to issuers of certain types of debt securities, as well as the debt instruments themselves.

Economic Life

The expected period of time during which an asset is useful to the average owner, or until an asset is projected to generate economic benefits.