The Best Product Development Strategy for Most Firms Is to

question 143

Multiple Choice

The best product development strategy for most firms is to

• A) develop a small number of products that achieve market success and stick with them, because constantly changing old products (or introducing new ones) can confuse and frustrate customers.
• B) maintain one product line while adding regularly to that product line over time to sustain customer interest.
• C) constantly monitor consumer wants and needs and be willing to develop new products and adapt policies and services as those consumer needs begin to change.
• D) focus on the actual product or service and don't worry too much about factors such as image, price, and service.

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Definitions:

Income Statement

A financial report that shows the revenue, expenses, and profit or loss of a business over a specific period of time.

Adjusting Journal Entry

An accounting entry made to correct or update the financial records and ensure accurate reporting.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of economic benefits.

Deferral

Accounting method to postpone the recognition of revenues or expenses until a future accounting period.