With most companies, some customers are more valued or profitable for the firm than others. This is valuable information for a company—they can then better direct marketing and other efforts related to reaching and serving the most profitable part of its customer base.

• Discuss the type of costing you believe should be employed by a service firm to best help them to ascertain customer profitability.

Answer rating: 100% (QA)

Customer profitability analysis should be employed Customer profitability analysis is a managerial accounting tool for determining the net profit generated by a customer A productive client is one tha... View the full answer