Examlex

Solved

What Is the Lifetime Value of a Customer Concept? How

question 15

Essay

What is the lifetime value of a customer concept? How does it influence sellers?


Definitions:

Cost-Volume-Profit Analyses

A financial analysis tool that helps determine how changes in cost and volume affect a company's operating profit.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating the contribution towards covering fixed costs and profit.

Sales Volume

The total number of units of product sold in a particular period.

Contribution Format

An income statement layout that segregates fixed costs from variable costs, thus highlighting the contribution margin.

Related Questions