Justifying a new product's fit, profit potential, and marketability is known as:

• A. Inventory reconciliation
• B. Feasibility analysis
• C. Depreciation assessment
• D. Net sales calculation

Answer: (B)

Verified step by step guidance

1. Understand the concept of feasibility analysis: Feasibility analysis is a process used to evaluate the potential success of a new product or project. It involves assessing whether the product fits the market, has profit potential, and is marketable.
2. Differentiate feasibility analysis from other terms: Inventory reconciliation refers to matching physical inventory counts with accounting records, depreciation assessment deals with allocating the cost of an asset over its useful life, and net sales calculation involves determining total revenue after deductions like returns and discounts.
3. Recognize the purpose of feasibility analysis: It helps businesses make informed decisions by analyzing market demand, financial viability, and operational requirements for a new product.
4. Apply feasibility analysis in practice: Businesses conduct market research, financial projections, and operational assessments to justify the introduction of a new product.
5. Conclude that feasibility analysis is the correct term for evaluating a new product's fit, profit potential, and marketability, as it encompasses all necessary aspects of decision-making for product development.