Use the Following to Answer the Questions

question 18

Multiple Choice

Use the following to answer the questions.
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer.Treatment options include manicures,pedicures,facials,tea parties,and dress up photos.Parents can even purchase a birthday party package.Lil' Angels offers its services only to girls under the age of 14.Originally begun in Delaware,Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17.The company realizes that some changes may be needed.For example,management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 5.1.Lil' Angels Kids Spa is currently using a(n) ____ targeting strategy.

• A) undifferentiated
• B) exclusive
• C) concentrated
• D) differentiated
• E) selective

Identify what constitutes a cost object in cost allocation.

Understand the principles of activity-based costing (ABC) and its application.

Grasp the basics of activity-based management (ABM) and its importance.

Recognize how products and services consume resources differently according to their complexity and batch size.

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Definitions:

Creditors

Individuals or institutions to which money is owed by a person or entity.

Profit Margin

Measures the percentage of each dollar of sales that results in net income; computed by dividing net income by net sales.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating how efficiently a company is producing or sourcing its products.

Net Income

The amount of money a company earns after subtracting all its expenses from its total revenues.