A Key Component That Contributes to the Success of Many

question 19

Multiple Choice

A key component that contributes to the success of many companies' product development efforts relates to the emphasis placed on:

• A)assigning the task of new product development exclusively to the top management
• B)limiting the budget to reduce losses in case the product fails
• C)creating cross-junctional teams early in the development process
• D)assigning the task of developing new products to a group of marketers

---

Definitions:

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process, costing each process separately.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units that could have been produced with those costs.

Direct Materials

Materials in their unprocessed state that can be directly linked to the production of a particular item.

Equivalent Unit

A concept in cost accounting that converts the amount of work done on incomplete units of production to an equivalent number of fully completed units.