Businesses Use Demographic Studies to Understand Where People Live,their Lifestyles,and

question 92

True/False

Businesses use demographic studies to understand where people live,their lifestyles,and what they are likely to buy.
Demography is the statistical study of the human population to learn its size,density and characteristics.Since many goods and services appeal to customers with specific demographic characteristics (such as age or income),studying demographic trends can help businesses determine whether the demand for a good is likely to rise or fall.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they use.

Not A Product Cost

Indicates an expense not directly tied to the creation of products, such as administrative or sales expenses.

Direct Labor

Costs attributed to the workers directly involved in the production of goods or services.

Salespeople Commissions

The payment made to sales staff, usually calculated as a percentage of the sales they generate.