Measuring Customer Profitability Only by Looking at Whether the Sales

question 8

Multiple Choice

Measuring customer profitability only by looking at whether the sales revenue a customer generates exceeds the cost of goods sold ignores

• A)All the selling and administrative costs incurred to provide customer service and support.
• B)Manufacturing costs incurred as overhead.
• C)All fixed costs.
• D)None of these ans choices are correct.

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Definitions:

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, which can include interest on bonds, loans, convertible debt, and lines of credit.

Operating Cash Flow

The cash generated from the normal operating activities of a business, reflecting its operational profitability.

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its income.

Sunk Costs

Expenses that have already been incurred and cannot be recovered or altered, and should not affect future business decisions.