Product Line Refers to

question 156

Multiple Choice

Product line refers to

• A)a product and all its ancillary services (warranties, financing, etc.).
• B)the variations within a product class.
• C)a specific product SKU that has a unique brand, size, or price.
• D)a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.
• E)the entire product category or industry.

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Intermediate Product

A product that is a result of a process but is also used as an input in the production of a final or finished product.

Differential Revenue

The amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.

Differential Cost

The amount of increase or decrease in cost expected from a particular course of action compared with an alternative.