Product Line Extension Refers to the Development of Items That

question 127

True/False

Product line extension refers to the development of items that would expand the width of the product mix a company has to offer.

---

Definitions:

Cumulative Cost

The total cost accumulated for a project or an activity over a period of time.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold first.

Physical Movement

The actual transfer or change in location of goods, which can be relevant in the management of inventory and supply chains.

Perpetual System

An inventory system that continuously updates the balance of inventory after each purchase or sale.