____ Refers to the Allocation of Revenues and Costs to Customer

question 2

Multiple Choice

____ refers to the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers.

• A) customer profitability analysis
• B) net present value
• C) customer lifetime value
• D) activity-based costing

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Definitions:

Fourth Worker

In the context of diminishing returns, it could refer to a point where adding an additional worker leads to a lesser increase in output.

Marginal Productivity

The extra output that a business gains by adding one more unit of input, such as labor or capital.

Income Distribution

The way in which a country’s total GDP is spread amongst its population, affecting economic equity and quality of life.

Value Added

The increase in the value of a product or service as it passes through each stage of production or supply chain.