Which of the Following Is Usually NOT a Factor That

question 70

Multiple Choice

Which of the following is usually NOT a factor that must be considered when estimating the revenues and costs arising from a new product?

• A)The cost of capital tends to fluctuate over the period in question.
• B)The prices of technology products generally fall over time.
• C)Competition tends to reduce profit margins over time in most industries.
• D)Sales of a new product will typically accelerate, plateau, and ultimately decline over time.

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Definitions:

Net Income

A company's total earnings or profit, calculated as revenue minus expenses, taxes, and costs.

FOB Destination

A shipping term indicating that the seller is responsible for the goods until they are delivered to the buyer's specified location, whereupon title and risk of loss pass to the buyer.

Revenue Recognition

The accounting principle dictating the specific conditions under which revenue is recognized or recorded.