To Decide What New Products to Come Out with or What

question 25

Multiple Choice

To decide what new products to come out with or what old products to improve,businesses rely on:

• A)marketing consultants.
• B)a team of individuals from inside the company that reviews and evaluates the potential ideas.
• C)the opinion of the company's CEO.
• D)the heads of the marketing and accounting departments.

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Definitions:

Capital Cost

The upfront expenditure required to acquire or improve fixed assets such as buildings, machinery, or equipment, contributing to the productive capacity of a firm.

Hurdle Rate

The minimum rate of return on an investment that a business requires before it will proceed with the project.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted.

Fixed Order Interval

A replenishment method where orders are placed at fixed intervals, ensuring a periodic review and stock refill.