XYZ Company sells products X and Y to business customers. After implementing activity-based Costing to estmate...
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XYZ Company sells products X and Y to business customers. After implementing activity-based Costing to estímate customer-level technical support costs, the company found that customer A is profitable and customer B is unprofitable. What are reasonable ways to deal with customer B? (select ALL correct answers) O if nothing else works, "fire" customer B O charge a fee per technical-support call O charge customer Ba higher price per unit (assume that you can charge different customers different prices for the same product or service) O trick question -- it is impossible to estimate customer-level profitability O limit the number of free technical-support calls per customer XYZ Company sells products X and Y to business customers. After implementing activity-based Costing to estímate customer-level technical support costs, the company found that customer A is profitable and customer B is unprofitable. What are reasonable ways to deal with customer B? (select ALL correct answers) O if nothing else works, "fire" customer B O charge a fee per technical-support call O charge customer Ba higher price per unit (assume that you can charge different customers different prices for the same product or service) O trick question -- it is impossible to estimate customer-level profitability O limit the number of free technical-support calls per customer
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the correct answer is Charge the customer with higher price per unit Firing a customer isnt a so... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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