Data Mining Can Be Used to Identify Customers Who Are

question 128

True/False

Data mining can be used to identify customers who are not profitable and who should be abandoned.

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Definitions:

Assembly Department

An Assembly Department is a section within a manufacturing facility where components are assembled into final products.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs and treats fixed costs as period expenses.

Profit Reported

The financial gain disclosed by a business, typically over a specific period, after all expenses have been deducted from total revenues.