The differential analysis format for deciding whether to keep or drop a customer is similar to that used for making product line decisions.

Question

Quizplus · Accepted Answer

Both decisions involve analyzing the costs and benefits of a particular customer or product line. The differential analysis approach looks at the incremental costs and revenue associated with each option and compares them to make an informed decision. Therefore, the format is similar for both types of decisions.

The Differential Analysis Format for Deciding Whether to Keep or Drop