In the Customer Pyramid Classification, Where Customers Are Ranked According

question 17

Multiple Choice

In the customer pyramid classification, where customers are ranked according to profitability, the gold tier group members are those who are all of the following except:

• A) heavy users.
• B) somewhat price-sensitive.
• C) usually willing to try new offerings.
• D) likely to buy from several providers.

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Definitions:

Flexible Budget

A budget that adjusts to changes in the volume of activity, providing a more accurate basis for performance evaluation.

Customers Served

Refers to the number of individual customers or client accounts a business has successfully provided its products or services to within a specific period.

Activity Level

A measurement of the volume of activity or production within a company, often influencing costs and operational efficiency.

Activity Variances

The differences between the expected costs of activities and the actual costs, used in managerial accounting to analyze performance.