Which of the Following Is a Disadvantage of Gradually Introducing

question 162

Multiple Choice

Which of the following is a disadvantage of gradually introducing a product to market?

• A) It reduces the risk of introducing a new product.
• B) It is easier logistically to introduce it all at once.
• C) It is difficult to slow down production enough for a gradual introduction.
• D) It allows competitors to monitor the results of the new product.
• E) It prevents product differentiation based on geographical differences.

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Definitions:

Standard Cost System

An accounting method that uses standard costs for direct materials, labor, and overhead to assess performance and control costs.

Price Variance

The difference between the actual price paid for a good or service and its expected price, often analyzed in budgeting and cost management.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the actual production level, multiplied by the standard labor rate.

Direct Materials

The raw materials that are directly traceable to a finished product and are an integral part of the finished product.