What technique is used for customer profitability analysis?
What will be an ideal response?
Answer: Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing (ABC). ABC accounting tries to identify the real costs associated with serving each customer-the costs of products and services based on the resources they consume. The company estimates all revenue coming from the customer, less all costs.
You might also like to view...
What is formal communication in organizations? Describe the various types and provide an example of how each might be used in the workplace.
What will be an ideal response?
Megan Corporation's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Increases(Decreases)Asset and Contra-Asset Accounts: Cash and cash equivalents$( 3,000) Accounts receivable$( 14,000) Inventory$3,000 Prepaid expenses$( 7,000) Long-term investments$80,000 Property, plant, and equipment$55,000 Accumulated depreciation$58,000 Liability and Equity Accounts: Accounts payable$0 Accrued liabilities$15,000 Income taxes payable$( 11,000) Bonds payable$( 30,000) Common stock$20,000 Retained earnings$62,000 The company paid a cash dividend of $36,000 and it did not dispose of any long-term investments or property, plant, and equipment. The company did not issue any bonds
payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows.The net cash provided by (used in) financing activities last year was: A. $(10,000) B. $46,000 C. $(46,000) D. $10,000
Which of the following statements is true about incomes in the United States?
a. The average family incomes rose by one percent in 2012. b. The median household income in almost the same across different states. c. Most individuals in the United States prefer to wait for high-paying jobs to taking up lesser paying jobs. d. The median household incomes have peaked in the United States in the recent years.
Although the team interview can certainly enhance the selection of the "right person" for the job, it can also create more stress for the interviewee
Indicate whether the statement is true or false