Marketers Can Take Advantage of a Wealth of Public and Private

question 175

Multiple Choice

Marketers can take advantage of a wealth of public and private data about business customers using various industrial classification systems. However, as with any data, there are limitations associated with industrial classification systems' data. Which of the following is a limitation of industrial classification systems' data?​

• A)Some industries are included in multiple classifications in the systems.
• B)Double counting of sales data may occur when products are shipped between two divisions within the same organization.
• C)Only businesses with more than 1000 employees are included.
• D)Only service businesses are included in the classifications.
• E)The data is only available on a quarterly basis.

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Definitions:

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into finished products.

Equivalent Units

A concept used in cost accounting to express the amount of goods or services produced in terms of the number of complete units.

Materials

The raw items and components used in the production of goods.

Process Costing

An accounting methodology used for homogeneous products, attributing costs to units of product through an average or a similar method.