When Preparing a Sales Volume Analysis by Customer Classification

question 57

Multiple Choice

When preparing a sales volume analysis by customer classification:

• A)Management rarely finds the 80-20 principle in operation.
• B)Customers can be classified by industry groups but not by channels of distribution.
• C)This type of analysis is usually more fruitful when the customer groups are also analyzed by product line or territory.
• D)Management should study its large accounts and not waste time and money on the small ones.
• E)It is not useful to extend this analysis over several periods of time.

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Definitions:

Unemployment Compensation

Financial payments given to individuals who have lost their jobs through no fault of their own, to support them temporarily.

Federal Level

Pertaining to the national government of a country, as opposed to state, local, or municipal levels.

Workers' Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.

Independent Contractors

Individuals or entities that perform work for another entity under terms specified in a contract, with a significant degree of independence in the way they operate, not considered employees.