Which of the Following New Products Is the Best Example

question 127

Multiple Choice

Which of the following new products is the best example of the lowest level of risk from the company's point of view?

• A)adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
• B)moving from production of landline telephones to smartphones
• C)marketing the first Apple computer
• D)changing the formula from Coca-Cola to New Coke and then back to Coca-Cola Classic
• E)offering online marketing classes rebranded under a new college name

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Definitions:

Work in Process Account

An account used to track the costs associated with unfinished products during the manufacturing process, including labor, materials, and overhead.

Direct Labor Cost

The cost of wages, benefits, and payroll taxes for employees who are directly involved in the production of goods.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production.

Actual Overhead

The actual costs incurred for indirect materials, indirect labor, and other expenses that cannot be directly traced to products or services.