Which of the following is an appropriate way to analyse customer profitability?

Question

Quizplus · Accepted Answer

All of the given answers are appropriate ways to analyze customer profitability. Option A considers the cost of servicing a customer in relation to their gross margin which can help identify whether the customer is a profitable one. Option B compares the cost of servicing a customer to company or industry norms which can provide insight into how well the business is managing its resources. Option C examines the cost of servicing a customer over several years in relation to their gross margin which can help identify changes in profitability over time. A combination of these methods can provide a comprehensive analysis of customer profitability.

Which of the Following Is an Appropriate Way to Analyse