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• A) Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.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:

Relevant Range

The range of activity over which a company expects its operating assumptions, such as cost behavior and sales mix, to remain valid, influencing budgeting and financial planning.

Fixed Costs

Costs that do not vary with the level of production or business activity, remaining constant even when output changes.

Variable Cost

Expenses that change in proportion to the activity or volume of business.

Persons Served

A term often used in service delivery and nonprofit sectors to refer to the number of individuals who receive services or benefits from a program.