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Management · Q332

Management Accounting

Graduate and Post Graduate · Management · question 332

Q332

An analysis and reporting of revenues earned, and incurred costs to earn these revenues from customers is classified as

A.
partial productivity analysis
B.
treasury cost analysis
C.
customer profitability analysis
Answer
D.
customer cost analysis

Answer: Option C

Solution

Answer: Option C
Solution:
An analysis and reporting of revenues earned, and incurred costs to earn these revenues from customers is classified as customer profitability analysis. Customer Profitability Analysis is a tool from managerial accounting that shifts the focus from product line profitability to individual customer profitability.