Final answer:
Companies should not use normal investment criteria to budget for new-product developments. Instead, they should consider various factors such as market analysis, customer demand, potential competition, and the projected return on investment (ROI) for the new product.
Step-by-step explanation:
The statement is false. Companies should not use normal investment criteria to budget for new-product developments. Instead, they should consider various factors such as market analysis, customer demand, potential competition, and the projected return on investment (ROI) for the new product. Using normal investment criteria may not accurately capture the unique challenges and potential of a new product, and may lead to inadequate budgeting decisions. For example, a new product with high potential for growth and success may require more investment upfront, even if the immediate ROI is lower than the company's normal investment criteria.