Question 1

Which of the following is $\textbf{       not   }$ an example of how a company can help a customer become a profitable customer?

Accepted Answer

A) Encourage them to order in larger quantities to reduce shipping charges 
B) Encourage them to order through the cheaper internet sales channel rather than the more costly catalog sales channel 
C) Encourage them to delay payment on their account so as to forgo any sales discount 
D) Ask them to pay all shipping charges 
A) Encourage them to order in larger quantities to reduce shipping charges 
B) Encourage them to order through the cheaper internet sales channel rather than the more costly catalog sales channel 
C) Encourage them to delay payment on their account so as to forgo any sales discount 
D) Ask them to pay all shipping charges

Question 2

If an unprofitable customer $\textbf{     cannot    }$  be turned into a profitable one,the company should consider

Accepted Answer

A) Lowering its selling price for the customer 
B) Dropping the customer 
C) Increasing the selling price until the customer become profitable 
D) None of these ans choices are correct 
A) Lowering its selling price for the customer 
B) Dropping the customer 
C) Increasing the selling price until the customer become profitable 
D) None of these ans choices are correct

Question 3

Unprofitable customers should be

Accepted Answer

A) Dropped immediately. 
B) Evaluated for implications that any action will have on the customer,other customers and the company. 
C) Evaluated for implications that any action will have on the company only. 
D) Required to reimburse the company for any losses 
A) Dropped immediately. 
B) Evaluated for implications that any action will have on the customer,other customers and the company. 
C) Evaluated for implications that any action will have on the company only. 
D) Required to reimburse the company for any losses

Question 4

Customer net profit divides customer net profit by customer revenues.

Accepted Answer

A) True 
 B)False

Question 5

It may appear that all unprofitable customers should be dropped. However, before any action is taken, managers should evaluate all the implications of the action for the affected customer, for other customers, and for the company.

Required:

a.	 Explain three implications for the affected customer.

b.	Explain three implications for other customers.

c.	Explain three implications for the company.

Accepted Answer

Answers will vary. Some examples include

Which of the following is $\textbf{ not }$ an example of how a company can help a customer become a profitable customer?

If an unprofitable customer $\textbf{ cannot }$ be turned into a profitable one,the company should consider

Unprofitable customers should be

Customer net profit divides customer net profit by customer revenues.

Accounting As a Tool for Management

Cost Behavior and Cost Estimation Summary of Questions by Objectives and Blooms Taxonomy

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Filters

Exam 17: Topic Focus Customer Profitability

Which of the following is not \textbf{ not } not an example of how a company can help a customer become a profitable customer?

If an unprofitable customer cannot \textbf{ cannot } cannot be turned into a profitable one,the company should consider

Unprofitable customers should be

Customer net profit divides customer net profit by customer revenues.

Accounting As a Tool for Management

Cost Behavior and Cost Estimation Summary of Questions by Objectives and Blooms Taxonomy

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Filters

Which of the following is $\textbf{ not }$ an example of how a company can help a customer become a profitable customer?

If an unprofitable customer $\textbf{ cannot }$ be turned into a profitable one,the company should consider