Dividing Buyers into Groups Based on Their Knowledge, Attitudes, Uses

question 26

Multiple Choice

Dividing buyers into groups based on their knowledge, attitudes, uses or responses to a product is called:

• A) Psychographic segmentation
• B) Geographic segmentation
• C) Demographic segmentation
• D) Behavioristic segmentation

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Definitions:

Budgeted Amounts

Estimates of revenues, expenses, and other financial activities for a future period, used for planning purposes.

Operating Departments

Divisions within an organization responsible for carrying out the main business activities directly related to generating revenues.

Two-Stage Cost

A method in cost accounting where costs are allocated to cost centers in two stages, first to departments then to products or services.

Joint Cost

Costs incurred in the process of producing multiple products simultaneously, where the costs cannot be easily separated for each product.