AmazonCom Keeps Track of Goods Its Customers Have Ordered

question 108

Multiple Choice

Amazon.com keeps track of goods its customers have ordered.When a returning customer logs onto Amazon.com,the site creates a list of recommendations based on the customer's purchasing history.Amazon is segmenting the market by

• A)product.
• B)psychographic.
• C)demographics.
• D)end-use.

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Definitions:

Variable Expenses

Variable expenses are costs that vary directly with changes in production levels or business activity, such as materials and labor.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or product, aiding in accurate financial analysis and decision-making.

Common Fixed Expenses

Costs that do not vary with the level of production or sales and are shared among different segments or products of a company.