Which Is True with Regard to the Target Customer

question 6

Multiple Choice

Which is true with regard to the target customer?

• A) The target customer is the target buyer.
• B) The target customer is the target end-user.
• C) The target customer can be a target end-user and/or a target buyer.
• D) The target customer is always the target user.

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Definitions:

Operating Leases

Leases in which the lessee obtains the right to use an asset for a short period of time, without assuming the risks and rewards of ownership.

Initial Direct Costs

Expenses that are directly attributable to negotiating and arranging a lease, which are added to the carrying amount of the leased asset or deducted from the leasing income.

Residual Value

is the estimated amount that an entity would currently obtain from disposing of the asset, after deducting the estimated costs of disposal, at the end of its useful life.

Asset's Economic Life

The period over which an asset is expected to be economically useful to the owner.