The 80/20 Principle Holds That 20 Percent of All Customers

question 20

Multiple Choice

The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand.Although the percentages usually are not exact,the general idea often holds true.Which consumer market segment is described here?

• A) Benefit segmentation
• B) Geographic segmentation
• C) Market segmentation
• D) Usage-Rate segmentation

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Definitions:

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

An accounting entry on the right side of an account ledger, recording increases in liabilities, equity, and revenue, or decreases in assets and expenses.

Recording Process

The act of documenting financial transactions systematically in the books of accounts of a business.

Journal

An elaborate log that captures every financial transaction of an enterprise, initially entered prior to its transfer to the accounts within the general ledger.