Market Penetration Can Be Defined as the Subdividing of a Market

question 118

True/False

Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

---

Definitions:

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of fully completed units for inventory valuation.

Process Costing System

A financial recording method for allocating expenses to identical items that are manufactured in bulk through an uninterrupted process.

Weighted-Average Method

A costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold, weighting by the number of units.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services, which can be easily traced to the product.