When General Mills Changed the Formula for Its Oatmeal Crisp

question 92

Multiple Choice

When General Mills changed the formula for its Oatmeal Crisp cereal, it added ingredients to reduce the risk of high blood pressure, to lower cholesterol, and to reduce the risk of stroke, thus providing greater value to the consumer. Since it was not trying to reach a new target market, which new product strategy was General Mills using?

• A)improved product
• B)discontinuous innovation product
• C)repositioned product
• D)new product innovation

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Definitions:

Gain or Loss

Financial terms indicating the positive or negative financial result of transactions or events affecting the company's assets, liabilities, or equity.

Asset Sale

The sale of a company's assets, as opposed to the company itself or its shares, typically to raise cash or dispose of unwanted resources.

AASB 116

Australian Accounting Standards Board 116 pertains to Property, Plant, and Equipment, outlining the accounting treatment for most types of property, plant, and equipment.

Depreciation Methods

These are systematic ways of allocating the cost of a tangible asset over its useful life. Examples include straight-line and declining balance methods.