A Catalogue Retailer Decides It Will No Longer Send Catalogues

question 154

Multiple Choice

A catalogue retailer decides it will no longer send catalogues by mail to customers on its database who have not made a purchase in the last year.

• A)customer retention
• B)market basket analysis
• C)customer acquisition
• D)customer abandonment
• E)customer accrual

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Definitions:

Average Cost

A method of calculating the cost of inventories based on the average cost of all similar goods available during the period.

Adjusted Basis

The original cost of a property plus improvements, less any depreciation taken, used in calculating capital gains or losses for tax purposes.

Shares Sold

Refers to the act of selling ownership stakes in a company or investment.

Basis

The amount of investment in a property for tax purposes, used to determine the gain or loss on the sale of that property.