The Customer Equity Concept

question 14

Multiple Choice

The customer equity concept

• A) encourages a manager to consider both the costs and the revenue from a marketing strategy.
• B) recognizes that customers are satisfied at a cost--and it is basically an estimate of a firm's future earnings.
• C) applies even to firms that pursue several different strategies.
• D) focuses on earnings as well as sales.
• E) all of the above.

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Definitions:

Journal Entry

A record in accounting that represents every individual transaction made by a company, documented in the chronological order.

Operations

The fundamental activities undertaken by a business to provide its products or services.

Unadjusted Cost of Goods Sold

The initial calculation of the cost of goods sold that does not take into account any adjustments for returns or damaged goods.

Cost of Goods Sold

Costs directly related to making the goods that a company markets.