When a Product Is in the Growth Stage of Its

question 129

Multiple Choice

When a product is in the growth stage of its product life cycle,which of the following occurs?

• A) Persuasive and reminder advertising is decreased.
• B) Heavy advertising is used to build brand loyalty.
• C) Personal selling and sales promotions are the major elements of the promotional mix used.
• D) Personal selling is ineffective.

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Definitions:

FIFO

FIFO, or First-In, First-Out, is an inventory valuation method where goods first bought are the first to be sold.

Replacement Cost

The current cost of replacing an asset with a new one of the same kind and quality.

Inventory Turnover

A metric that measures the number of times a company sells and replaces its stock of goods during a certain period.

Lower of Cost

This accounting principle requires that the inventory or stock should be reported at the lower of its cost or the market value.