Alpha Cleaning Equipment Co

question 42

Multiple Choice

Alpha Cleaning Equipment Co.has started the actual design and development of a new floor buffing machine.It also has the details of manufacturing,marketing,and operations of the new product.According to the stage-gate process,what is the next stage of the project?

• A) Launch the product by producing it commercially and selling it.
• B) Verify and validate the new product, its marketing, and production.
• C) Form a focus group to make sure the product meets user expectations.
• D) Build a business case to justify the project.

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Definitions:

Total Fixed Cost

An expenditure that does not change with the level of production or sales over a short period.

Average Variable Costs

The costs of labor, material, and other inputs that change with the level of production or sales volume.

Average Fixed Costs

The sum of all fixed production costs divided by the number of units produced.

Total Costs

The sum of all expenses a firm incurs in the production of goods or services, including both fixed and variable costs.