Which of the following is irrelevant to the decision to eliminate an unprofitable segment?
A. Common fixed costs
B. Segment revenue
C. The segment margin
D. Direct fixed costs
Answer: A
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Which of the following research and development costs should always be capitalized?
A) costs of intangibles purchased from others B) costs of materials, equipment, and intangibles with alternative future uses purchased from others C) costs of equipment with an expected life greater than three years D) costs of contract services purchased from others
If your assignment was to create a value proposition and product-price positioning strategy for each segment, based on the segment's unique customer needs and characteristics, you would be in which of the following steps of the segmentation process?
A) needs-based segmentation B) segment identification C) segment attractiveness D) segment positioning E) segment "acid-test"
Sunset Lawn Service puts most of its resources into value-building marketing investments. The management at Sunset is practicing customer-value marketing
Indicate whether the statement is true or false
If Purchases total $40,000; Freight-In, $3,000; Purchases Discounts, $1,000; and Purchases Returns and Allowances, $500; then total cost of goods purchased will total:
a. $40,000 b. $41,500 c. $38,000 d. $35,500 e. $44,500