Whether or Not a Given Product Is an Innovation Is

question 15

Multiple Choice

Whether or not a given product is an innovation is determined by:

• A) an objective measure of technological change.
• B) the research and development department's opinion.
• C) the perceptions of the potential market.
• D) the length of time that it has been on the market.

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Definitions:

Cost Of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead.

Merchandise

Goods that are purchased, stored, and sold by a business in the ordinary course of its operations, often referred to as inventory.

Gross Profit Rate

The gross profit rate, also known as gross profit margin, is the ratio of gross profit (sales minus cost of goods sold) to sales, expressed as a percentage.

Merchandise Available

The total quantity of goods available for sale, including beginning inventory plus purchases made during the period.