A Company Has Experienced a Steady Decline in the Sale

question 14

Multiple Choice

A company has experienced a steady decline in the sale of its existing products due to unavoidable competition. It is introducing a new product to stabilize this decline in market share. In the analysis of the strategy for the new product,

• A) the lost sales should be treated as a sunk cost and not included in the analysis.
• B) the lost sales should be included along with the sales forecast for the new product.
• C) the present value of the lost sales should be included in the cashflow analysis.
• D) the sales forecast should include either the anticipated revenue from the new product or the present value of the lost sales, whichever is greater.

---

Definitions:

Tags

Keywords or terms assigned to pieces of information (like an internet bookmark, digital image, or computer file) to help describe an item and allow it to be found again by browsing or searching.

Object-Oriented Analysis

A type of analysis in which programmers first identify all the categories of inputs that are part of the problem the program is meant to solve.

XML

A markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable.

Data-Based Tags

Elements or markers in digital data that are used for identification, information, or categorization purposes.