When Conducting Research on a New Entry

question 53

Multiple Choice

When conducting research on a new entry: 

• A) the more information the entrepreneur has, the more difficult it is to focus on the consumer.
• B) the entrepreneur must rely upon surveys more that market knowledge.
• C) extensive research is expensive in terms of time and money.
• D) lesser prior knowledge is advantageous since it minimizes the risk of entrepreneurial bias.

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Definitions:

Purchase Price Variances

The difference between the actual cost of goods purchased and the standard cost, used to measure the efficiency of the purchasing function.

Standard Cost

A predetermined cost of manufacturing, selling, or any other business operation, used for budgeting and performance evaluation.

Nonfinancial Performance Measures

Indicators used to assess aspects of a company's operations that do not directly relate to financial outcomes, such as customer satisfaction or employee turnover.

Standard Direct Materials

The predetermined cost and quantity of materials required for the production of goods, used in budgeting and costing.