Which of the Following Statements Best Explains Why Idea Screening

question 128

Multiple Choice

Which of the following statements best explains why idea screening may be the most important step of new product development?

• A) It increases the number of ideas generated.
• B) Some potentially profitable ideas may be ill perceived by the idea screeners.
• C) Some ideas that will become market disasters may be originally viewed favourably by the idea screeners.
• D) It gives research and development team members an opportunity to gather consumer feedback.
• E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.

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Definitions:

Contract Revenue

Revenue recognized by a company from contracts for the sale of goods or services, often recognized over the period of the contract based on the completion or delivery of services/goods.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

Recoverable Costs

Expenditures that a company expects to recover in the future through tax deductions, reimbursements, or as contracts costs.

Critical Event

A significant occurrence or change that impacts an organization's operations or decision-making process.