Measuring customer profitability only by looking at whether the sales revenue a customer generates exceeds the cost of goods sold ignores
A)All the selling and administrative costs incurred to provide customer service and support.
B)Manufacturing costs incurred as overhead.
C)All fixed costs.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Measuring customer profitability solely based on sales revenue and cost of goods sold ignores other essential costs like customer service and support, marketing and advertising, order fulfillment, and other administrative expenses. Therefore, option A is the correct choice as it highlights the importance of considering all the selling and administrative costs incurred to provide customer service and support while measuring customer profitability.

Measuring Customer Profitability Only by Looking at Whether the Sales