Which of the below statements is FALSE? A) Whenever a new product com

Which of the below statements is FALSE?

A) Whenever a new product competes against a company’s already existing products and reduces the sales of other products, opportunity costs occur.
B) Erosion can provide cost savings.
C) A synergy gain occurs when a new product can be introduced that complements another current product so that sales for this current product increases.
D) Increases in working capital accounts necessary to support a project add upfront costs, but also provide for cost reductions at the end of the project.

ANSWER

Answer: A
Explanation: A) Whenever a new product competes against a company’s already existing products and reduces the sales of other products, EROSION OCCURS.