Which of the Following Is NOT a Factor That a Manager

question 24

Multiple Choice

Which of the following is NOT a factor that a manager should bear in mind when estimating a project's revenues and costs?

• A) Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.
• B) A new product typically has its highest sales immediately after release as customers are attracted by the novelty of the product.
• C) The prices of technology products tend to fall over time as newer, superior technologies emerge and production costs decline.
• D) Prices and costs tend to rise with the general level of inflation in the economy.

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Definitions:

Rule of 70

A method to estimate the number of years it will take for a variable to double, by dividing 70 by the annual growth rate of the variable.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of borrowing or the return on saving.

Managed Mutual Funds

Investment funds that are operated by professional fund managers who allocate the fund's investments and attempt to produce capital gains for the fund's investors.

Stock Index

A measure designed to track the performance of a group of stocks, representing a specific segment of the market.