In the chapter, we discussed the use of several measures of the innovation process, includ ing percentage

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In the chapter, we discussed the use of several measures of the innovation process, includ­

ing percentage of sales from new products and the breakeven time (BET) metric. Although both measures are attractive for communicating the economics and benefits from successful product development processes, each also has some limitations and dysfunctional consequences if managers focus too narrowly on them as a performance measure.

Identify the potential limitations and weaknesses of both these outcome measures of the new product development process.

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Advanced Management Accounting

ISBN: 9780132622882

3rd Edition

Authors: Robert S. Kaplan, Anthony A. Atkinson, Kaplan And Atkinson

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