Customer profitability analysis allows managers to do which of the following: a. Identify the closest competitor. b. Focus solely on service calls. c. Sell to higher end customers. d. Manage each customers costs-to-serve.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Customer profitability analysis allows managers to do which of the following:
a. Identify the closest competitor.
b. Focus solely on service calls.
c. Sell to higher end customers.
d. Manage each customers costs-to-serve.

2. Transferred-in units and cost flows are similar to:
a. Materials added at the end of the process.
b. Materials added at the beginning of the process.
c. Conversion costs added at the end of the process.
d. Conversion costs added at the beginning of the process.
3. In making decisions about whether to sell at split-off or process joint     products further, the allocation
 of joint manufacturing costs is treated as a(n):
a. Essential cost
b. Weighted average cost
c. Sunk cost
d. Period cost

4. Cost allocation provides a service firm a basis for evaluating the:
a. Cost and profitability of its services.
b. Value of its services.
c. Manufacturing costs for the company.
d. The exact cost of each department

5. Customer lifetime value is concerned with which of the following:
a. Customer loyalty.
b. Customer wealth.
c. Customer long-term value.
d. Customer short-term profitability.

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