Which of the following should be specified by the policy-making criteria on new products?
A) A maximum level of profits that can be expected.
B) The exact market share of the new product.
C) The exact level of expected profits.
D) The availability and cost of capital to develop a new product.

Question

Which of the following should be specified by the policy-making criteria on new products?
A) A maximum level of profits that can be expected.
B) The exact market share of the new product.
C) The exact level of expected profits.
D) The availability and cost of capital to develop a new product.

Quizplus · Accepted Answer

Policy-making criteria on new products should specify (1) a working definition of the profit concept acceptable to top management, (2) a minimum level or floor of profits, (3) the availability and cost of capital to develop a new product, and (4) a specified time period in which the new product must recoup its operating costs and begin contributing to profits.

Which of the Following Should Be Specified by the Policy-Making