Question

Which of the following is not a factor that a manager should bear in mind when estimating a​ project's revenues and​ costs?

A) Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.
B) A new product typically has its highest sales immediately after release as customers are attracted by the novelty of the product.
C) The prices of technology products tend to fall over time as newer, superior technologies emerge and production costs decline.
D) Prices and costs tend to rise with the general level of inflation in the economy.

Answer 1

B) A new product typically has its highest sales immediately after release as customers are attracted by the novelty of the product.

Step-by-step explanation:

When a manager is implementing and executing a project, there are certain factors to be considered for revenue and costs associated with the project.

For instance, that a new product typically has its highest sales immediately after release as customers are attracted by the novelty of the product is not a factor that a manager should bear in mind when estimating a​ project's revenues and​ costs. This is simply because it is not guaranteed that all new products introduced to the market would be accepted or attractive to customers due to economical factors such scale of preference and opportunity costs.

Ideally, the factors to be considered by a manager when estimating a​ project's revenues and​ costs are;

1. Sales of a product will typically accelerate, stabilize, and then decline as the product becomes outdated or faces increased competition.

2. The prices of technology products tend to fall over time as newer, superior technologies emerge and production costs decline.

3. Prices and costs tend to rise with the general level of inflation in the economy.