For Years, TXA Corp

question 82

Multiple Choice

For years, TXA Corp. wanted to develop a face recognition system that clients could buy to improve their security systems. The managers of the company evaluated the product's market potential, economic viability, and anticipated capability development, which were all very strong. However, TXA Corp. was unable to make a successful product. The key factor that the company failed to adequately assess in making technology decisions was the product's technological ____.

Definitions:

Cost Driver

A factor that incurs costs, as its presence or level of activity directly affects the total cost of an activity or product.

Inventory Levels

The quantity of goods and materials a company has in stock at a given time, crucial for meeting customer demand and planning production.

Contribution Margin Ratio

A financial metric that indicates the portion of sales revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.