A Large Department Store Segments Its Customers into 4 Categories

question 148

Multiple Choice

A large department store segments its customers into 4 categories (butterflies, true friends, strangers, and barnacles) in order to evaluate customers on ________.

• A)profitability and revenue
• B)revenue and customer loyalty
• C)profitability and customer loyalty
• D)revenue and communications costs
• E)profit and communications costs

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from its total revenue.

Cost of Goods Sold

Direct spending associated with producing the merchandise a company trades, including both materials and manpower costs.

Worksheet

A columnar device used by accountants to aid them in completing the accounting cycle—often just referred to as "spreadsheet." It is not a formal report.

Revenue

The total income received by a company from its normal business activities, before any expenses are subtracted.