Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold.
A) gross sales
B) back orders
C) the forecast
D) gross margin

Question

Quizplus · Accepted Answer

Traditional customer profitability analyses start with gross sales, which represents the total revenue generated by the customer. This figure is then adjusted for returns and allowances to arrive at net sales. The cost of goods sold is subtracted from net sales to determine the gross profit margin.

Traditional Customer Profitability Analyses Would Start with _____ Less Returns