What Are the Four Classifications (Tiers)of Customers in Customer Profitability

question 46

Essay

What are the four classifications (tiers)of customers in customer profitability analysis using activity-based costing?

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Definitions:

Shared Assumptions

Deeply held beliefs within an organization's culture that are often taken for granted but influence behaviors and decision-making processes.

Enacted Values

These are the values that are actually exhibited or converted into employee behavior within an organization.

Hidden Elements

Aspects of an organization that are not visible or overt but influence its culture and operations.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business organization.