Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the PLC
What will be an ideal response?
Product development begins when the company finds and develops a new product idea. Sales are zero and the company's investment costs mount. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Decline is the period when sales fall off and profits drop. A company may seek to reinvigorate a product in decline, maintain it hoping competition will diminish, harvest it, or drop it entirely.
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When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining:
A. whether, in the predecessor's opinion, the company's internal controls have been satisfactory. B. whether the engagement should be accepted. C. whether the predecessor's work should be utilized. D. whether, in the predecessor's opinion, the financial statements are materially correct.
Which of the following statements is true of globalization?
A. It does not allow employees to provide services although most economies have become very efficient at producing physical goods. B. It encourages the maintenance of the status quo. C. It occurs through cross-border partnerships. D. It does not create threats to anybody. E. It fails to involve smaller firms.
Define and discuss the concept of materiality in relation to misrepresentation
Which of the following statements is true about language training in the context of selection criteria for international assignments?
A. Language training is less important in countries like Russia, where successful integration is independent of the ability of an expatriate to converse in Russian. B. According to research, expatriates are most likely to learn the local language if the host country is a developing nation. C. Being able to speak with locals in their own language is a major milestone for many expatriates in finally feeling connected to the foreign country. D. Traditionally, managers from English-speaking countries have done very well in the language area.