The Main Point in Segmenting Products into Different Classes Is

question 39

Multiple Choice

The main point in segmenting products into different classes is that companies should recognize that these items ________ in the potential for being priced higher or advertised more as ways to increase sales,margins,or both.

• A) differ
• B) are more elastic
• C) are less elastic
• D) respond to advertising differently
• E) none of the above

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Definitions:

Direct Materials

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.

Units

A measure or quantity chosen as a standard to express the size, amount, or dimension of something.

Flexible Budget

A budget model that modifies its allocations to reflect changes in operational activity levels, improving accuracy in financial planning and performance evaluation.

Budgeting Formulas

Mathematical expressions or rules used to plan and control income and expenditure, aiding in the preparation and implementation of budgets.