Each Customer Segment Should Be Analyzed to Assess Cost to Serve

question 58

True/False

Each customer segment should be analyzed to assess cost to serve, to ensure that the price paid by customers is commensurate with the value they are receiving.

---

Definitions:

Cash Inflow

refers to the movement of money into a business, often from operations, financing, or investing activities, contributing to the company's cash balance.

Cash Outflow

The movement of money out of a business, project, or investment, usually in the form of expenses, purchases, or cash distributions.

Cash Flow Ratio

A metric that assesses the liquidity of a company by comparing its operating cash flow to its current liabilities.