Ideally, Before a New Product Is Developed, a Firm Should

question 51

Multiple Choice

Ideally, before a new product is developed, a firm should have a precise protocol, a statement that identifies: (1) a well-defined target market; ( 2) specific customers' needs, wants, and preferences; and (3)

• A)what the product will be and do.
• B)a clear plan for product distribution.
• C)clear financial goals and expectations.
• D)an analysis of potential competitive products.
• E)a precise budget of how much can be spent at each step of the process.

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Definitions:

Contra-asset

A contra-asset account is a type of asset account where its balance is a negative figure that offsets the balance of its corresponding asset account.

Liability

A financial obligation or debt owed by a company to another entity, which is expected to be settled through the transfer of assets or services.

Inventory

Consists of all the goods a company has in stock that are ready to be sold, including raw materials, work-in-progress, and finished goods.

Expense

A cost or charge that a company incurs through its operations aimed at generating revenue.