Which of the following is not a benefit of customer profitability analysis? Identifies unprofitable customers Help...
Which of the following is not a benefit of customer profitability analysis?
Identifies unprofitable customers
Help track cost spent on customers
Helps managers identify actions to improve specific customer profitability
Speeds up production process
Homework Answers
The correct answer is
Speeds up production process
Under customer profitability analysis, all revenues are costs are allocated to customers on reasonable basis which helps managers in identifying unprofitable customers, helps track costs and further helps in decision making to improve profitability
It does not lead to any change in production process
and hence, it is not the benefit of customer profitability analysis
Add Answer to:
Which of the following is not a benefit of customer
profitability analysis?
Identifies unprofitable customers
Help...
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Seek ways to improve value-adding-activities.
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E19-26. Customer Profitability Analysis Leahy Inc. has 10 customers that account for all of its $4,200,000 of net income. Its activity-based costing system is able to assign all costs, except for $650,000 of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based on activity costing produced the following customer profits and losses: $ 306,000 Customer #1..... ........................... 624,000 (257,000) #4. 909,000 950,000 872,000 #7... 598,000 #8............ 322,000 .. . # 9..................
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Need help by 6pm today.
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of handling of customer inquiries on orders. He created an online
customer inquiry utility that allows customers to access and track
their orders. Under which of the efficiency improvement steps will
this fall?
Define a process map for each activity/process chosen.
Identify value and non-value-adding activities.
Create ways to eliminate all non-value-adding activities.
Seek ways to improve value-adding-activities.
4.
he CFO for Tangent Shipping would like to improve its...
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