New projects or products can provide positive indirect effects as well as negative effects. Which one of the following appears to be a negative indirect effect?
A) The new machine required for the project uses less electricity than the existing machine.
B) Orders for your complementary products are expected to increase.
C) Customer reorders of supplies related to existing products are expected to decrease.
D)Variable costs are expected to decrease since the firm can order larger quantities.

Question

Quizplus · Accepted Answer

If customer reorders of supplies related to existing products are expected to decrease, it means that the sales of existing products may decrease as well, leading to a negative indirect effect on the company's revenue. The other options all suggest positive indirect effects.

New Projects or Products Can Provide Positive Indirect Effects as Well