Idea Generation Refers to

question 4

Multiple Choice

Idea generation refers to

• A)the stage of the new-product development process when concepts are converted to prototypes.
• B)the stage of the new-product development process that develops a pool of concepts to serve as candidates for new-products.
• C)the stage of the new-product development process where possible promotional campaigns and advertising themes are created.
• D)the techniques used to screen and reject those ideas that have no merit.
• E)the discussion and decision of which target market segments will be selected.

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Definitions:

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.

Fixed Monthly Expenses

Regular expenses that do not vary in amount from month to month, such as rent and salaries.

Net Operating Income

A measure of a company's profitability from its regular, core business operations, excluding deductions of interest and taxes.

Contribution Margin Ratio

The percentage of each sale that remains after variable costs are deducted, indicating how much revenue is contributing to fixed costs and profit.