The 80/20 Rule Is Most Closely Related to Which Basis

question 181

Multiple Choice

The 80/20 rule is most closely related to which basis of segmentation?

• A) geographic
• B) psychographic
• C) opportunistic
• D) demographic
• E) behavioral

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Definitions:

Break-even Sales

The amount of revenue required to cover all fixed and variable costs associated with running a business, resulting in neither profit nor loss.

Northern Division

A geographical or organizational segment of a company responsible for operations in the northern region.

Fixed Expenses

Costs that do not change in total with the level of activity or production volume within a relevant period.

Super-variable Costing

A hypothetical or extreme approach to variable costing where only the most directly variable costs are considered in product or service pricing.