Which of the following is usually NOT a factor that must be considered when estimating the revenues and costs arising from a new product?

Question

Social Studies

Sarahi Briggs

2 October, 07:01

Which of the following is usually NOT a factor that must be considered when estimating the revenues and costs arising from a new product?

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Answers (1)

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Barbara Hoffman · Answer 1

A) the fluctuations in the cost of capital over the period in question

Explanation:

When we start producing a new product, the larger part of the capital actually come from the initial investment that occurred from cost of researching and assembling fixed assets that we can use to produce the product.

After we recoup the initial investment, the cost of producing the goods tend to become cheaper as the time goes by. Because of this, the fluctuations in the cost of capital actually rarely considered when estimating revenues for the new product.