Which of the Following Statements About the Step-Down Method of Allocating

question 17

Multiple Choice

Which of the following statements about the step-down method of allocating service department is correct?

• A) It is a less accurate method of allocation than the direct method.
• B) It cannot be used when a company has more than two service departments.
• C) It is a simpler allocation than the direct method.
• D) It ignores some interdepartmental services.

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Definitions:

Segmentation Variables

Criteria used to divide a market into smaller segments, based on characteristics such as demographics, psychographics, geography, or behavior.

Market-product Grid

A matrix used to analyze and display the relationship between different markets and products, identifying opportunities.

Marketing Actions

Marketing actions entail strategies and tactics implemented by businesses to promote their products or services, aiming to enhance brand awareness and stimulate demand.

Product Groupings

The organization of products into categories or families based on similarities in function, customer segment, or other characteristics, facilitating easier management and marketing.