The Life Cycles of Many Products Are Becoming Shorter

question 61

Multiple Choice

The life cycles of many products are becoming shorter

• A)causing companies to recognize that it may be more advantageous to confront,rather than compete with,the competition.
• B)making products in the maturity stage of their life cycle the basis on which firms expect growth to be generated.
• C)so companies spend less and less on product design and development because products will not last as long as previously.
• D)meaning that tools such as benchmarking and target costing become less important in adapting to the competitive environment.

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Definitions:

Truth-In-Lending Act

A U.S. federal law designed to protect consumers in their dealings with lenders and creditors, by requiring clear disclosure of key loan terms and costs.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the return on investment.

Misrepresentation

The act of providing false, misleading, or incorrect information typically in a contractual context, leading to an erroneous belief by another party.

Material Omission

The failure to include vital information that results in a deceptive representation, significant in legal and financial disclosures.