Product Extension and Refinement

question 138

Multiple Choice

Product extension and refinement

• A) shorten the product life cycle.
• B) extend the product life cycle.
• C) are too costly for most firms.
• D) take place during basic research.
• E) end the product life cycle.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Cash Break-even

The point at which a business's cash inflows match its cash outflows, meaning the business is making just enough to cover its cash operating expenses.

Capital Intensity

A measure of how much capital is used in the production process, indicating the extent to which a business or economy relies on capital equipment compared to labor.

Production Process

The series of actions or steps taken to manufacture a product from raw materials to the finished goods.