Designing a New Product Is an Example of a

question 39

Multiple Choice

Designing a new product is an example of a

• A)Unit-level activity.
• B)Batch-level activity.
• C)Product-level activity.
• D)Organisation-sustaining activity.

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Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting all operating expenses from operating revenues.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, used to cover fixed costs and contribute to net profits.

Variable Expense Ratio

A financial metric that represents the proportion of variable expenses to sales revenue, indicating how much variable costs change in response to sales activity.

Break-even Point

The level of production or sales at which total costs equal total revenue, resulting in no net loss or gain.