Traditional Customer Profitability Analyses Would Start with _____ Less Returns

question 29

Multiple Choice

Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold.

• A) gross sales
• B) back orders
• C) the forecast
• D) gross margin

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Definitions:

Operating Costs

Operating Costs are the expenses associated with the day-to-day functionalities of a business, excluding costs related to production.