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: 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 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 customer
Discuss how and why examining these variables could help your chosen company increase its overall profitability.