Each Stage of the New Product Development Process Requires Management

question 129

Multiple Choice

Each stage of the new product development process requires management to give its approval before moving forward. What does this ensure?

• A) It ensures that the company doesn't create product diffusion.
• B) It ensures that companies don't waste resources on marginal concepts.
• C) It ensures that all products that actually make it through the process will be successful.
• D) It ensures that employees have a stake in the process.

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Cost Behaviour

Cost behavior is the manner in which a cost changes as the related activity level or volume changes, typically classified into fixed, variable, and mixed costs.

Cost Estimation

The process of forecasting the likely costs of a project or production, based on various factors and historical data.

Data Collection

The process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.