What Is a Firm Doing When It Chooses to Target

question 208

Multiple Choice

What is a firm doing when it chooses to target potential customers by postal code, specific occupation, or even lifestyle?

• A) megamarketing
• B) hypermarketing
• C) micromarketing
• D) concentrated marketing

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, indicating the side which increases the account.

Allowance Method

A financial method that estimates the value of debts unlikely to be collected by determining uncollectible accounts each period's end.

Allowance for Doubtful Accounts

A contra asset account that represents the estimated proportion of accounts receivable that may not be collectable.

Direct Write-off Method

An accounting approach where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.