BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Customer profitability is the difference between the revenues earned from and the costs associated with the customer relationship during a specified period. In theory, this is a trouble-free calculation. Find out the cost to serve each customer and the revenues associated with each customer for a given period.

Detailed explanation-2: -Profitability is a measure of an organization’s profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a less-efficient organization, which must spend more to generate the same profit.

Detailed explanation-3: -Profitability is measured with income and expenses. Income is money generated from the activities of the business. For example, if crops and livestock are produced and sold, income is generated.

Detailed explanation-4: -Profits are the net gain made after deducting all expenses. Profitability is based on the extent to which a business makes or earns its profits.