The Term Demographics Refers to

question 227

Multiple Choice

The term demographics refers to

• A)the description of a population according to its values or cultural beliefs.
• B)an objective measurement of a person's likelihood to purchase a good or service.
• C)the psychological profile of a prospective consumer.
• D)the relative position of a population to an urban center.
• E)the description of a population according to selected characteristics such as age, gender, ethnicity, and income.

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Definitions:

Contribution Margin Ratio

A measure expressing how a product's selling price exceeds variable costs, shown as a percentage of the sales price.

Fixed Expenses

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales commissions or raw materials.