Businesses Can Find Their Most Valuable Customers by Using the RFM

question 75

True/False

Businesses can find their most valuable customers by using the RFM formula-recency,frequency and monetary value.

---

Definitions:

Standard Labor Hours

The estimated amount of time expected to produce a unit of output under normal conditions.

Overhead

Indirect costs related to the day-to-day running of a business, excluding direct costs like labor and materials.

Unfavorable Volume Variance

A cost variance that occurs when the actual volume of production or sales negatively deviates from expected volumes, often leading to higher costs or lower profits.

Failure To Maintain

A situation where the required level of upkeep, documentation, or regulatory compliance has not been sustained.