The Cost of Customer Retention Is Higher Than the Cost

question 17

True/False

The cost of customer retention is higher than the cost of acquisition

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Definitions:

Gross Profit

The financial metric representing the difference between a company's net sales and the cost of goods sold, indicating the basic profitability of products.

Net Income

A company's financial gain after removing expenses and tax liabilities from its total revenue.

Gross Profit Rate

Gross profit expressed as a percentage, by dividing the amount of gross profit by net sales.

Common Stockholders' Equity

Common Stockholders' Equity represents the interest of common shareholders in a company, calculated as the difference between total assets and total liabilities, including preferred equity.