Managers Who Utilize Customer Profitability Charts Should Drop Customers That

question 129

True/False

Managers who utilize customer profitability charts should drop customers that generate a negative customer operating income, since dropping an unprofitable customer will automatically cause overall income to increase.

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Definitions:

Objectives

Are specific results usually expressed in measurable indices that someone wishes to achieve and may relate to the individual, a group, or the whole organisation.

Operational Plans

Define specific activities to implement strategic plans.

Strategic Plans

Define long-term needs and set action directions for the organization. Tactical plans are developed and used to implement strategic plans.

Financial Plans

Documents that outline an individual's or organization's present financial situation and long-term monetary goals, along with strategies to achieve those goals.