New Product Development Is Characterized by Which of the Following

question 36

Multiple Choice

New product development is characterized by which of the following?

• A)It is risky, expensive, and time consuming
• B)It is necessary, highly profitable, and expensive
• C)It is market driven, expensive, and has a high success rate
• D)It is expensive, consumer driven, and mandatory

---

Definitions:

Fixed Costs

Fixed costs are business expenses that do not change in proportion to the volume of goods or services produced or sold.

Make or Buy

A decision-making process regarding whether to produce goods in-house or purchase them from an external supplier.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as factory rent and salaries of supervisory staff.

Direct Labor Cost

A rephrased definition: The cost incurred from the labor of workers who actively contribute to the manufacturing or creation of a product.