The _____ Approach Is a Method for Introducing Lower Cost

question 34

Multiple Choice

The _____ approach is a method for introducing lower cost products by eliminating or reducing features,using less-expensive materials,or altering the service or warranty to offer the product at a lower price point to the market.

• A) Innovation diffusion
• B) Profitability analysis
• C) ROI
• D) Time to market
• E) Cost reduction

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Definitions:

Profitability Index

A financial tool used to measure the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.

Internal Rate

Typically refers to the internal rate of return (IRR), which is a rate of return used in capital budgeting to measure and compare the profitability of investments.

Preference Decisions

Choices made between alternatives based on preferences for certain criteria or outcomes.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.