Which of the Following Is True of Long-Term Customers

question 90

Multiple Choice

Which of the following is true of long-term customers?

• A)They are not effective in providing intangible benefits such as feedback and referrals.
• B)They cost more to serve than new customers.
• C)They provide a minor share in a company's new business.
• D)They are usually more valuable assets than new ones because they buy more.

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Definitions:

Allocating Cost

The process of assigning costs to various cost objects such as products, services, or departments for accounting purposes.

Inventory Accounting

A method of accounting that deals with valuing and accounting for changes in inventoried assets, impacting how businesses report their cost of goods sold and value of inventory in financial statements.

Just-In-Time Systems

Inventory management systems that produce or provide items exactly when needed, minimizing inventory costs.

Stock-Outs

Stock-outs occur when an item is no longer available for sale, typically because inventory levels have been depleted.