When a Food Producer That Distinguishes Between Individually-Owned Grocery Stores

question 107

Multiple Choice

When a food producer that distinguishes between individually-owned grocery stores and major retailers such as Target, the segmentation approach being used is:

• A)industry.
• B)business size.
• C)geographic location.
• D)usage.

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Definitions:

Estimated Net Realizable Value

The anticipated fair value of an asset in terms of the amount for which it could be sold, minus the estimated costs of sale or disposal.

Percentage of Net Sales

A financial ratio that represents certain expenses, liabilities, or profits as a percentage of the net sales, used to analyze the financial health and performance of a business.

Bad Debts

Amounts owed to a company that are considered uncollectible, typically due to the debtor's inability to pay.

Factoring Commissions

Factoring commissions are fees paid to a factor, or financial intermediary, for advancing funds to a business by purchasing its accounts receivable.