Drawn from Internal Secondary Data, Customer Lifetime Value Profiles Include

question 61

True/False

Drawn from internal secondary data, customer lifetime value profiles include customer acquisition costs, the profits generated from individual sales to each customer, the costs of handling customers and their orders, and the expected duration of the relationship.

---

Definitions:

Mark Up

The percentage added to the cost price of goods to cover overhead and profit.

Direct Labor-Hours

This refers to the total number of hours worked by employees who are directly involved in the production of goods or services.

Machine-Hours

A measure of production activity that quantifies the total hours machines are operated in the manufacturing process.

Direct Labor Cost

The wages or salaries directly attributable to the production of goods or services, excluding indirect costs such as supervision and maintenance.