When preparing a sales volume analysis by customer classification:
A)Management rarely finds the 80-20 principle in operation.
B)Customers can be classified by industry groups but not by channels of distribution.
C)This type of analysis is usually more fruitful when the customer groups are also analyzed by product line or territory.
D)Management should study its large accounts and not waste time and money on the small ones.
E)It is not useful to extend this analysis over several periods of time.

Question

Quizplus · Accepted Answer

Analyzing customer classification by product line or territory can provide more valuable insights for sales volume analysis. This helps in identifying the areas where the company is performing well and where it needs to improve. Therefore, choice C is the best option. The other choices are incorrect because the 80-20 principle is commonly found in sales volume analysis, customers can be classified by both industry groups and channels of distribution, management should study both large and small accounts, and it is useful to extend this analysis over several periods of time to identify trends and patterns.

When Preparing a Sales Volume Analysis by Customer Classification