______ Is the Total Stream of Purchases That a Customer

question 120

Multiple Choice

______ is the total stream of purchases that a customer could contribute to the company over the length of the relationship.

• A) Customer value
• B) Return on customer
• C) Customer equity
• D) Target return
• E) Customer lifetime value

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Definitions:

Investment Turnover

A ratio that measures how effectively a company uses its invested capital to generate sales revenue.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as a percentage of the investment's profit to its cost.

Support Department Cost

Support department cost refers to the expenses associated with departments that provide essential services or support to production departments but do not directly engage in the production process.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of net sales to average invested assets.