If a Company Sends Direct Mail Only to Zip Codes

question 171

Multiple Choice

If a company sends direct mail only to zip codes in communities that match a firm's best customer profiles, it is using which type of segmentation?

• A)Demographic
• B)Psychographic
• C)Geographic
• D)Geodemographic

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Definitions:

Overhead Costs

Indirect costs associated with operating a business, which can include rent, utilities, and administrative expenses.

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing facility, applied uniformly to all products.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Allocation Base

The criteria or standard used for distributing overhead costs to various cost objects, such as products, services, or departments.