Which of the Following Scenarios Is NOT a Reason a Firm

question 106

Multiple Choice

Which of the following scenarios is NOT a reason a firm would eliminate an item within a product line?

• A) The firm decided to refocus marketing efforts elsewhere.
• B) The firm must respond to evolving markets.
• C) The product undermined its own brand.
• D) The product being eliminated is unprofitable.
• E) The firm has decided to capture new markets.
• All of these are reasons firms might decide to delete a product from a product line, except the desire to capture new markets.

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Definitions:

Raw Materials Purchased

The total cost of raw materials bought by a company for the purpose of production in a specific period.

Cost Of Goods Manufactured

The total expense incurred to produce products during a specific period, including costs of raw materials, labor, and manufacturing overhead.

Cost Of Goods Sold

The total cost directly linked to the production or acquisition of the goods sold by a company.

Raw Materials Inventory

This represents the total cost of all materials that are not yet processed and used in the production of goods.