The 80-20 Rule in the Case of CRM Implies That

question 74

Multiple Choice

The 80-20 rule in the case of CRM implies that:

• A) 80 percent of the buying comes from 20 percent of the vendors
• B) 80 percent of the sales come from 20 percent markdowns
• C) 80 percent of the customers pay with 20 percent of their income
• D) 80 percent of the sales come from 20 percent of the customers
• E) 80 percent of the merchandise is sold at 20 percent off

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Definitions:

Units Produced

The total number of units of product manufactured during a specific period of time.

Indirect Manufacturing Cost

Costs involved in production that are not directly linked to individual products, such as maintenance, utilities, and management salaries.

Units Produced

The number of complete items that are made or finished by a manufacturing or production process.

Manufacturing Overhead Cost

Any expenses related to production that are not direct materials or direct labor.