Which of the Following Statements Is $\bold{FALSE}$ Regarding the Use of the 80/20 Rule in Managing Customer

question 13

Multiple Choice

Which of the following statements is $\bold{FALSE}$ regarding the use of the 80/20 rule in managing customer relationships?

• A) Advances in technology and data collection techniques allow firms to profile customers in real time.
• B) Twenty percent of customers provide 80 percent of business profits.
• C) Some customers are too expensive to keep given the low level of profits that they generate.
• D) The 80 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
• E) The firm's top customers are the most obvious candidates for retention strategies.

Understand the treatment of underapplied or overapplied overhead in accounting records.

Identify and use relevant T-account summaries to track production costs and inventory movements.

Analyze raw material requisitions and the impact on cost of production.

Prepare journal entries related to manufacturing costs, including direct materials, direct labor, and manufacturing overhead.

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Definitions:

Labor Demand Curve

A curve representing the quantity of labor that employers wish to hire at different wage rates.

Technological Advances

Innovations and improvements in technology that enhance efficiency, productivity, or quality in goods and services.

World Price

The price of a good that prevails in the world market for that good.

Oil Field

A region with an abundance of oil wells extracting petroleum (crude oil) from below ground.