What does the 80/20 principle propose?

A. Roughly 80 percent of the profit comes from 20 percent of the sales.
B. Roughly 80 percent of a firm's customers are repeat business.
C. Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
D. Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
E. Sales are equally divided among heavy, medium, and light users, but they all need slightly different products.


Answer: D

Business

You might also like to view...

Generally accepted methods of accounting for a change in accounting principle include

A) restating prior years' financial statements presented for comparative purposes. B) including the cumulative effect of the change in net income. C) prospective changes. D) making a prior-period adjustment.

Business

Responsibility accounting is of least help to manufacturing companies

Indicate whether the statement is true or false

Business

Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda has a(n) ________ economy

A) subsistence B) marketing C) merchandise exporting D) raw material exporting E) industrializing

Business

Most governmental and nonprofit agencies issue requests for proposals, or RFPs

Indicate whether the statement is true or false

Business