BUSINESS ADMINISTRATION
CUSTOMER RELATION MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
customer value analysis
|
|
|
predictive modeling
|
|
|
customer profitability analysis
|
|
|
lifetime value analysis
|
Detailed explanation-1: -Activity Based Costing looks at the various cost drivers to accurately isolate costs and determine a product’s profitability. In contrast, Customer Profitability Analysis is a method of looking at the various activities and expenses incurred in servicing a particular customer.
Detailed explanation-2: -Key Takeaways. Activity-based costing (ABC) is a method of assigning overhead and indirect costs-such as salaries and utilities-to products and services. The ABC system of cost accounting is based on activities, which are considered any event, unit of work, or task with a specific goal.
Detailed explanation-3: -Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. Therefore, this model assigns more indirect costs (overhead) into direct costs compared to conventional costing.
Detailed explanation-4: -With activity-based costing method, customer profitability is obtained by calculating revenue less the real costs of the products the customer is ordering and less the real cost of servicing the customer.