Explain Why Many Segmentation Schemes Fail

question 64

Essay

Explain why many segmentation schemes fail.

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Definitions:

Direct Labour-Hours

The total hours of labor directly involved in the production of goods or services, often used as a basis for allocating overhead costs.

Direct Material Purchased

The raw materials acquired that are directly used in the manufacturing of a product.

Actual Overhead Cost

The real expenses incurred during production that are not directly tied to specific products, including electricity, rent, and managerial salaries.

Direct Labour-Hours

The total hours worked by employees that are directly involved in the manufacturing process of a product.