Which of the Following Statements Is Not True of a Product

question 60

Multiple Choice

Which of the following statements is not true of a product in the decline stage of the product life cycle?

• A) One reason for the decline of a product may come from the introduction of new technology.
• B) Some products' decline is permanent.
• C) Characteristics of the decline stage differ for each product.
• D) One reason for the decline of a product may be caused by a shift in consumer preferences.

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Definitions:

Prepaid Insurance

An asset account representing insurance payments made in advance for future coverage periods, recognizing expense over the coverage term.

Current Asset

An asset likely to be converted into cash within a year, used in the normal operations of a business.

Plant Asset

A long-term physical asset that is used as part of a company's operations to help in generating revenues, similar to a fixed asset but specifically related to manufacturing.

Land

Real property consisting of natural resources and geographic space, which has various uses such as agricultural, commercial, or residential.