Subdividing a Market into Distinct Subsets of Customers According to Their

question 92

Multiple Choice

Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as

• A) market penetration.
• B) product diversification.
• C) market segregation.
• D) market segmentation.
• E) positioning.

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Definitions:

Activity-based Costing

A method of allocating overhead and indirect costs to products or services based on the activities that generate those costs.

Overhead Costs

General business expenses that are not directly attributable to a specific product or service but are necessary for the business to operate.

Direct Labor-hours

The total hours worked by employees directly involved in the manufacturing process, used in assigning costs to products.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.