Which of the Following Costs Should Be Included in Customer

question 67

Multiple Choice

Which of the following costs should be included in customer profitability analysis?
i. Product costs
ii. Distribution
iii. Customer servicing
iv. Finished goods inspection costs

• A) i, ii and iii
• B) ii, iii and iv
• C) i, iii and iv
• D) i, ii and iv

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Definitions:

Equivalent Interest

A term used in finance to describe an interest rate that may have been adjusted to reflect compounding over a different period than the one originally stated.

Equivalent Interest

An interest rate or yield that makes two financial instruments with different payment structures equally valuable.

Nearest 0.01%

A method of rounding numbers to the closest hundredth of a percent.

Coffee Fund

Informally refers to a pool of money collected for buying coffee or sometimes used as a casual fund for small group expenses.