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Market Segments Can Be Defined in Many Different Ways

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Essay

Market segments can be defined in many different ways.One way to carve up a market is to identify preference segments.List and briefly characterize three preference segments cited in the text.


Definitions:

Work In Process

Inventory that includes materials that have been partially processed but are not yet completed products.

Conversion Costs

The costs necessary to convert raw materials into finished products, usually consisting of labor and overhead expenses.

Unit Materials Cost

The cost assigned to individual units that includes the direct materials expense required to produce each unit, integral for calculating the total production cost.

Process Cost System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

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