What Is the Purpose of the Product Development Step in the Product

question 17

Multiple Choice

What is the purpose of the product development step in the product development process?

• A) To introduce the product into the market
• B) To test the product at the customer's location, to see if the product will work under real-world conditions
• C) To develop and test a prototype of the product in the lab, based on the specifications developed in the previous step
• D) To evaluate the product and adapt elements of the marketing program to fit changing market conditions
• E) To develop detailed specifications of the product

---

Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Fair Market Value

The estimated price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Book Values

A term used in accounting to refer to the value of an asset as reported on the company's balance sheet, calculated as the cost of an asset minus any depreciation or amortization.

Original Costs

The initial amount spent to acquire an asset, including purchase price and all expenses incurred to bring the asset to its intended use.