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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Explain the importance of customer-profitability analysis.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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#1
9 years ago
Customer-profitability analysis is the reporting and assessment of revenues earned from
customers and the costs incurred to earn those revenues. An analysis of customer differences
in revenues and costs reveals why differences exist in the operating income earned from different customers. Managers use this information to ensure that customers making large contributions to the operating income of a company receive a high level of attention from the company and that loss-making customers do not use more resources than the revenues they provide.
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cyborgcyborg
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#2
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9 years ago
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jerico Author
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#3
9 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
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#4
9 years ago
Grinning Face
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