Which of the following costs should be included in customer profitability analysis?
i. Product costs
ii. Distribution
iii. Customer servicing
iv. Finished goods inspection costs

Question

Quizplus · Accepted Answer

Customer profitability analysis should include all costs associated with serving the customer, including product costs, distribution costs and customer servicing costs. Finished goods inspection costs are a part of production costs and may not directly relate to serving the customer, therefore may not be necessary to include in the analysis.

Which of the Following Costs Should Be Included in Customer