The statement concerning customer profitability analysis that is not true is:
A) The customer or customer groupings become the cost object
B) There is not normally a connection between more profitable products or services and more profitable customers
C) To conduct this analysis it is necessary to identify the resources consumed and the associated costs of servicing customers
D) None of the above, i.e. all the statements are true

Question

Quizplus · Accepted Answer

The statement that there is not normally a connection between more profitable products or services and more profitable customers is not true. In practice, there often is a connection, as more profitable products or services can lead to more profitable customers, especially when those customers buy in higher volumes or with better margins.

The Statement Concerning Customer Profitability Analysis That Is Not True