Which of the Following Is Usually NOT a Factor That

question 52

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

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Definitions:

Activity Level

A measure of the volume of production or operations, which can impact costs and profitability within a business.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Variances

The difference between planned or expected financial outcomes and the actual results, often analyzed in budgeting and cost management.

Performance Reports

Documents that compare actual work performance against planned or expected outcomes.