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Accounting is a stream that is rapidly growing in the United States for students looking for a degree worth the time and experience. One should keep in mind that accountancy, unlike other subjects,requires many courses from a different subject. It requires constant practice and the ability to handle any type of account. Due to its intensity as hardworking course time management is a key to your prosperity.
The customer-cost analysis is a part of Customer profitability analysis. According to customer-cost analysis homework help, this analysis helps the company to analyze the profit gained by the company from each customer this profit can be calculated by revenue less cost.
This cost does not just consist of manufacturing or distribution but also marketing, service and other product related cost which is undertaken for the service of the customer. Once the cost is analyzed, the customer can be divided into different profit tiers. Customers are basically classified into four types:
- Platinum Customers- Most profitable
- Gold Customer-Profitable
- Silver Customer- Less profitable but desirable
- Lead Customer- unprofitable and undesirable
Now, that you have learned what customer profitability is it would be easy for you to understand customer cost. To put it simply customer cost identifies the cost to be incurred by the company/firm for providing before and after sale services to the customers. With our manuals as customer-cost analysis homework help, you will get a detailed analysis of the whole aspect.
Problems faced by the students
Accountancy is a subject that requires time and rigorous practice to understand. We understand you, and therefore we provide our customer-cost analysis assignment help so that you don’t waste your time trying to understand something that can be easily be taught to you in few simple steps. Time management is a major problem faced by the students studying accountancy.
The biggest challenge on calculating the customer profitability of the product is the assignment of the cost for the customer. The reason being that it is often not cleared what cost is incurred by a firm in producing such a product to the consumer.
For components of cost not directly related to the customer service, a separate method needs to be used to allocate the costs to consumer if the total of customer profit is equal to operating profit. We have the best customer-cost analysis assignment help for you!
How to check the effectiveness of the cost?
Cost benefit analysis is a systematic approach to estimate the strengths and weakness of alternatives it helps the company to choose the best possible cost and where to curtail it. Following are the steps to check the effectiveness of the cost:
- List of alternative programs
- Measurement of all cost benefit plans
- Prediction of the outcome within a specified time period
- Conversion of cost to common currency
- Application of discount rate
- Calculation of net present value
- Performing sensitivity analysis
- Adopt recommended choice
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