Question

1. A break-even calculation use the following data:

	A.	fixed costs
	B.	future costs
	C.	both of the above
	D.	none of the above

2. A variable cost will happen whether or not you make any sales

True
False

3.   Companies in the top third of their industries typically get ____% of their sales from new products.

	A.	20
	B.	30
	C.	40
	D.	50

4. Form utility means value created by transferring a product’s ownership.

True
False

5. Many companies actively solicit product ideas from people _____ the organization, including marketing, sales, research, and manufacturing personnel, and some even establish internal “entrepreneurial” units.

	A.	inside
	B.	outside
	C.	who have assets in the
	D.	none of the above

Answer 1

1. Answer is a. Fixed cost

The reason is that break even analysis is done to determine how many units of products are required to sell to cover it's cost ie. Fixed cost.

2. False

The reason is that variable cost depends on the number of units sold. It is a fixed cost that is incurred whether sales are made or not.

3. Answer is 20

As in the initial stage sales are low of the new products. Thus, it is merely 20% of sales.

4.false

Form utility means the value obtained by customers from product design when the design of the product is changed and presented it to customer which is more appealing to them.

5. answer is a. Inside

The reason is that when people inside the company works in integrity with each other departments and personnel which help in generation of new ideas.