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Artist 52 [7]
3 years ago
9

The CEO of Dave's firm just came back from a business seminar. He called Dave into his office and stated, "I just found out abou

t the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." Dave needs to think fast for a good answer because he knows that
it is often impossible to identify with precision where a product is in the product life cycle.
Business
1 answer:
Slav-nsk [51]3 years ago
4 0

Answer: B.it is often impossible to identify with precision where a product is in the product life cycle.

Explanation:

It is very hard to identify for sure where a product is in the life cycle for a myriad of reasons chief amongst them being the lack of sufficient data, external factors influencing data and misalignment with historical data.

Products go through four stages in product life style starting from introduction, growth, maturity and decline and pinpointing exactly where a product is can be affected by the aforementioned factors.

For example, products like natural food or yoghurt might be considered declining then due to renewed interest for whatever reason, they are rejuvenated and go back into a Growth phase.

Or in another example, the data of a product may be based on a stable economic period which does not hold anymore so the sales of the product cannot be expected to be the same and thus it can be wrongfully recategorized.

If you need any clarification do react or comment.

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The industry-low, industry-average, and industry-high cost benchmarks on pp. 5-6 of the latest issue of the glo-bus statistical
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Suppose that real GDP per capita in Italy is $32,000. If real GDP per capita is growing at a rate of 2.5% per year, how many yea
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1 year ago
member of the production team skilled in research and analysis, who helps actors, designers, and directors better understand the
monitta

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Dramaturg

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3 years ago
Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years.
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Answer:

Effect on income= -$18,000

Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

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