Which Metric Is Based on the Relationship Between the Revenue

question 75

Multiple Choice

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?

• A)Churn rate
• B)CLTV
• C)Cost per lead
• D)Cost per sale

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Definitions:

Incremental Interest Rate

The interest rate used for calculating the present value of future cash flows that differ from the interest rate in the original contract.

Cash Sales Price

The amount of cash received from a transaction before any deductions, like discounts or returns.

Non-interest-bearing Note

A promissory note or loan agreement that does not require the borrower to pay interest, only to repay the principal amount.

Book Value Method

An accounting technique that determines the value of an asset based on its original cost minus any depreciation, amortization, or impairment costs.