Answer:
the best description for the concept of erosion is option A) The cash flows of a new product that come at the expense of a firm's existing cash flow.
Explanation:
Erosion in accounting explains the activities that impacts negatively on a company's asset or funds.
When erosion occurs and asset is lost, the net worth of the company reduces.
Erosion could reduce profits, sales, or tangible assets, such as manufacturing equipment and sometimes all of a sudden due to technological innovation.
When the cash flows of a new product come at the expense of a firm's existing cash flow, erosion will occur.
