Customer Lifetime Value Refers To

question 2

Multiple Choice

Customer lifetime value refers to:

• A)the revenue that a customer generates over a lifetime that maximizes short-term sales.
• B)the revenue that a customer generates over a lifetime through purchasing long-term products.
• C)the weighted average cost of capital,after tax,including the cost of serving a customer.
• D)the margins that a customer generates over a lifetime less the cost of serving the customer.

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Definitions:

Recording Process

The systematic method of documenting business transactions in the accounting records in a chronological order.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the general ledger.

Ledger

A comprehensive collection of all the accounts of a business, where transactions are recorded in a structured and detailed manner.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, usually resulting in a net profit or loss.