Which of the Following Statements About "New Products" Is FALSE

question 190

Multiple Choice

Which of the following statements about "new products" is FALSE?

• A) In order for it to be advertised as new, there should be a functionally significant change in the product-according to the FTC.
• B) A product should be considered "new" by a particular firm if it is new in any way for that company.
• C) The FTC considers six months as the maximum time that a product should be called "new."
• D) According to the FTC, a product may be called "new" as long as the firm has made at least some minor change in the package or product.
• E) A marketing manager should consider a product new if it is aimed at new markets.

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Definitions:

Inventory Reconciliation

The process of verifying that actual inventory matches recorded inventory, often involving adjustments for discrepancies.

Raw Material Inventory

Materials that are usually purchased but have yet to enter the manufacturing process.

Safety Stock Computation

The calculation of a buffer quantity of inventory kept on hand to prevent stockouts, based on variability in demand and supply.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how much individual values differ from the average.