Companies use financial measures to evaluate the merit of a new-product proposal.The simplest to use is called ________ ,in which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.

Question

Quizplus · Accepted Answer

The definition provided specifically describes breakeven analysis as the simplest financial measure for evaluating a new-product proposal. Conjoint analysis, risk analysis, regression analysis, and ANOVA analysis are more complex methods for evaluating a new-product proposal and are not as commonly used as breakeven analysis.

Companies Use Financial Measures to Evaluate the Merit of a New-Product