What technique is used for customer profitability analysis?
What will be an ideal response?
Answer: Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing (ABC). ABC accounting tries to identify the real costs associated with serving each customer-the costs of products and services based on the resources they consume. The company estimates all revenue coming from the customer, less all costs.
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Southwest Sugar, Inc has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging
Conversion costs are added evenly throughout each process. Data from the month of August for the Recovery Department are as follows: Metric Tons Beginning Work-in-Process Inventory 0 Started in production 22,000 Ending Work-in-Process Inventory 6,000 Costs Beginning Work-in-Process Inventory $0 Costs added during August Direct materials 520,000 Direct labor 220,000 Manufacturing overhead 125,000 Total costs added during August $865,000 The ending Work-in-Process Inventory is 100% and 85% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. How many metric tons of sugar were refined and transferred to the Packaging Department in August? A) 22,000 metric tons B) 6,000 metric tons C) 16,000 metric tons D) 28,000 metric tons
How can scheduling a messaging exchange make the exchange more efficient and effective?
A) Lengthy and complex information can be included and discussed without interruption B) There will be less need to focus on the planning and completing aspects of the three-step writing process C) Planning time is reduced because writing style and tone will be less critical D) The recipient can carry on multiple conversations at the same time and increase their efficiency level E) The recipient can treat the message like a scheduled meeting and be available without interruption