With an ABC Analysis of Segmenting Business Customers,the "B" Customer

question 89

Multiple Choice

With an ABC analysis of segmenting business customers,the "B" customer is

• A)60% to 70% of the customers whose buying behavior can be described as moderate
• B)occasional and low-dollar buyers who make up between 15% and 20% of the customers
• C)15% to 20% of the customers who account for a significant portion of the revenue generated
• D)the top 10% of the customers who generate 80% to 90% of the revenue

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Definitions:

Installment Method

A revenue recognition method that allows income to be realized at the point of sale and subsequently as payments are received.

Revenue Recognition

Accounting principle that determines the specific conditions under which income becomes realized as revenue.

Period Of Sale

The specific time during which a sale transaction is recognized in the accounting records, important for revenue recognition principles.

Completed-Contract Method

An accounting technique used to recognize revenue and expenses upon the completion of a contract, rather than progressively over its duration.