When Market Segments Are Being Evaluated, Assessment of Competitors Is

question 143

Multiple Choice

When market segments are being evaluated, assessment of competitors is important because:

• A)it is difficult to segment a market when it has multiple competitors.
• B)an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
• C)sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
• D)a competitive analysis may lead to confusion as to who the key competitors are.
• E)competition is generally not a major problem as long as a marketer is aware of it.

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Definitions:

Unadjusted Cost of Goods Sold

The initial calculation of all costs directly associated with the production of goods sold by a company, not including any adjustments for inventory methods or valuation changes.

Operations

The day-to-day activities involved in running a business that are necessary for producing goods and services and generating revenue.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for assigning labor costs to products.

Predetermined Overhead Rate

An estimated overhead rate used to apply manufacturing overhead costs to products, calculated before the costs are actually incurred.