A comparison of year-to-year changes in customer net present value estimates
A)is one way to be certain of the customer evaluation process.
B)highlights whether managers have been successful in maintaining long-run profitable relationships with their customers.
C)can be used to motivate customers.
D)is difficult to calculate because of the need to know the customers' cost of capital.
E)can be used in place of the payback method.

Question

Quizplus · Accepted Answer

Year-to-year changes in customer net present value estimates can show whether managers have been successful in maintaining long-run profitable relationships with their customers. This information can help managers identify areas that need improvement and adjust their strategies accordingly. The other options are not accurate or relevant to this context.

A Comparison of Year-To-Year Changes in Customer Net Present Value