Why Is New Product Development a Spanning Process

question 60

Multiple Choice

Why is new product development a spanning process?

• A) It links market requirements with internal processes such as manufacturing
• B) It can serve to carry market requirements to those managers in charge of internal processes
• C) It links customer requirements with internal processes such as financial management
• D) It can manage conflict so that it has a positive effect on the firm
• E) It recognizes the importance of communicating customer requirements across the firm in order to develop a market orientation

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Definitions:

Variable Manufacturing Costs

Costs that change in proportion to the volume of production, such as raw materials and direct labor expenses.

Machine Hours

A measure of production or work done, calculated by the number of hours a machine is operated.

Sales Mix

The variation in the quantities and types of products or services that a company sells, influencing the total revenue and profits.

Production Information

Data related to the manufacturing process, including quantities produced, costs, and production times.