What Does Market Segmentation Help Businesses Do

question 194

Multiple Choice

What does market segmentation help businesses do?

• A) more effectively choose suppliers
• B) better evaluate their performances
• C) more accurately create a business plan
• D) define customer needs and wants less precisely

Evaluate make-or-buy decisions considering opportunity costs and total cost implications.

Assess the relevance of specific costs and revenue factors in segment elimination and make-or-buy decisions.

Calculate cash payback period and its importance in assessing investment opportunities.

Estimate internal and annual rate of return to evaluate the profitability of investments.

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Definitions:

Accounts Payable

Amounts a company owes to creditors for goods or services that have been bought on credit and are payable within a specified period.

Subsidiary Ledger

A detailed ledger that contains the details of transactions for individual accounts, which then summarize into the general ledger.

Control Account

An account in the general ledger used to summarize and consolidate transactions from multiple subsidiary accounts.

Accounts Payable Subsidiary Ledger

A book or file that contains, in alphabetical order, the name of the creditor and amount owed from purchases on account.