Regarding Segmenting, as Opposed to Combining

question 243

Multiple Choice

Regarding segmenting, as opposed to combining:

• A) Segmenting is usually a riskier approach than combining.
• B) Segmenters try to satisfy consumers "very well" instead of "pretty well."
• C) Segmenting limits a firm to smaller sales potential and lower profits.
• D) A segmenter with limited resources may have to use the multiple target market approach instead of the single target market approach.
• E) All of these alternatives are true.

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Definitions:

Labour Efficiency Variance

The difference between the budgeted labor hours or costs and the actual labor hours or costs incurred.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for those hours.

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are applied to production activities, based on an expected level of activity.