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Explain the relationship between cost allocation and

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Explain the relationship between cost allocation and customer profitability. Why is determining customer profitability important to a business, and how can appropriate cost allocation help accomplish that goal? Focus on the following five main factors that businesses can use to evaluate customer profitability:Discuss how and why examining these variables can help a business increase its overall profitability.

  • Likelihood of customer retention
  • Potential for sales growth
  • Long-run customer profitability
  • Increases in overall demand from having well known customers
  • The ability to learn from customers

 

Reference no: EM13571038

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