Cost Considerations Usually Favor More Aggregating and Larger Market Segments

question 195

True/False

Cost considerations usually favor more aggregating and larger market segments, but smaller segments may be required to satisfy needs more exactly.

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Definitions:

Profitability

A measure of the efficiency and financial success of a company, usually determined by the ratio of its profits to its revenues.

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces, such as raw materials and labor expenses.