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• A) Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.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

Ending Cash Balance

The amount of cash a company has at the end of a given period, reflecting all cash inflows and outflows during that period.

Cash Disbursements

Outflows of cash for various purposes, including operating expenses, asset purchases, and other business activities.

Cash Disbursements

Money that is paid out by a company, often including expenses, dividend payments, and other cash outflows.

Administrative Expenses

Costs related to the management and general operations of a business, such as salaries of non-sales personnel, rent, and utility expenses.