In RFM Analysis, an R Score of 5 Shows That

question 23

Multiple Choice

In RFM analysis, an R score of 5 shows that ________.

• A) a customer has not made any recent purchases
• B) a customer has bought the most expensive items
• C) a customer has frequently ordered expensive items
• D) a customer has purchased the least expensive items

---

Definitions:

Missing Funds

A financial discrepancy where funds are unaccounted for due to errors, theft, or fraud.

Petty Cash Fund

A petty cash fund is a small amount of cash kept on hand for making immediate, low-cost expenditures, reducing the need for writing checks or using credit transactions.

Cash Short

A situation where the cash on hand is less than the expected amount or what is recorded in the books, often indicating errors or mismanagement.

Journal Entry

A record in an accounting journal that captures the financial transactions of a business, showing debits and credits for each transaction.