An RFM Analysis Is Used To

question 80

Multiple Choice

An RFM analysis is used to: 

• A) determine which products or services are most popular.  
• B) identify the most loyal customers. 
• C) track the replies from direct mail pieces. 
• D) compare the efficiencies of various direct marketing programs.

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Definitions:

Weighted-Average Method

A technique that figures out the cost of sold goods and the finishing inventory value, by averaging the cost of all items up for sale.

Labour and Overhead

Combined costs of workforce (both direct and indirect labor) and overhead expenses incurred during production.

Blending Department

A division within a manufacturing operation where raw materials are combined to produce a homogeneous product.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.