Henry has classified the following items under variable costs. Which item has he classified incorrectly?

Which of the following is true of the development stage of a new-product development process?

a. It sets several tasks in motion, such as building inventories and advertising to potential customers. b. It evaluates a new-product idea usually before any prototype has been created. c. It estimates the demand, cost, sales, and profitability of a product for the first time. d. It examines the feasibility of manufacturing a product at an acceptable cost.

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________

A) niche marketing B) local marketing C) diversification D) product adaptation E) downsizing