Direct Marketers Use the RFM Formula to Select Customers According

question 130

True/False

Direct marketers use the RFM formula to select customers according to how much time has passed since their last purchase, how many times they have purchased, and how much they have spent since becoming a customer.

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Definitions:

Current Assets

Resources anticipated to be turned into cash, disposed of, or used up either within one year or over the length of the business's operational cycle, depending on which period is greater.

Net Sales

Revenue from the sale of goods or services after deducting returns, allowances, and discounts.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those displayed in a bank statement to ensure consistency.

Incorrectly Recorded

Refers to entries or transactions that have been recorded inaccurately in the accounting records, requiring correction.