A Cafe Focuses Primarily on Customers Who Are Aged Between

question 12

Multiple Choice

A cafe focuses primarily on customers who are aged between 18 and 35 and earning about $20,000 to $40,000 annually. This segmentation of customers is known as its

• A) retail market.
• B) target market.
• C) virtual market.
• D) global market.
• E) labor market.

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Definitions:

Period Costs

Expenses that are not directly tied to production and are expensed on the income statement in the period they are incurred, such as selling and administrative expenses.

Prepaids Insurance

Prepaid insurance refers to insurance premiums that are paid in advance and represent a future economic benefit for the period they cover.

Prime Costs

The combined costs of direct materials and direct labor that are directly involved in the production of goods.

Incurred

Refers to costs or expenses that have been realized or experienced by a business as a result of its operations.