When Does a Company Earn the Majority of Revenue for a Product

question 113

Multiple Choice

When does a company earn the majority of revenue for a product that goes through the product life cycle?

• A) phase-out of product and introduction to market stages
• B) introduction to market and mature market stages
• C) product development and mature market stages
• D) mature market and phase-out of product stages

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Definitions:

Materials Variance

The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.

Price Variances

The difference between the actual cost of a good or service and its standard or expected cost, which can be favorable or unfavorable.

Quantity Variances

Differences between the actual quantity of materials or inputs used in a production process and the standard quantity expected to be used, often leading to cost variances.

Favorable Variance

A financial situation where actual costs are less than the standard or budgeted costs, or actual revenue is higher than expected.