When companies calculate the lifetime value of a customer they look at ________
A) how much profit they expect to make from a particular customer, including each and every purchase she will make from them now and in the future
B) the positive word of mouth about the product that the customer can spread among her family, friends, and acquaintances
C) the lifetime expectancy of the product the customer purchased
D) the age of the customer to see whether she is likely to live long enough to utilize the product being sold
E) the career path of the customer to see if she may move to a different geographic area and no longer purchase from the company
A
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Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance = $55,500 favorable; direct labor efficiency variance = $74,000 unfavorable. Sheldon allows 4 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 20% more direct labor hours than the standard allowed for the output achieved.
What was the direct labor flexible-budget (FB) variance for the month (rounded to the nearest dollar)?
Referring to Cool Looks, what are total cash inflows in September?
A) $18,000 B) $20,000 C) $30,000 D) $38,000 E) $50,000