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Accounts or if you prefer accountancy simply means book keeping. It means having a separate book containing assets, liabilities, income, expenses, etc. and are recorded in an order according to the debit and credit entries in the book. These entries are known as “posting” which becomes the ledger.
Accountancy is one of those subjects which requires logic and intelligence to understand and solve but sometimes you might get stuck, and that’s where we, myhomeworkhelp.com,comes up with customer-revenue analysis homework help to understand this chapter better and soon you would be swooning through its problem like it is no biggie.
What is Customer-Revenue analysis?
Before we start to understand the meaning of customer-revenue analysis, we must first understand analysis that it is part of the customer profitability analysis. Customer Profitability analysis means the profit the business makes after serving a customer or a group of customers, which is determined by the revenue earned and cost incurred to make that sale.
Therefore from this we can begin to understand that customer revenue analysis is the revenue associated with the customer or the customer contract and usually comes up for subscription based companies such as magazines, newspapers, etc.
Benefits of Customer-revenue analysis
- The first and perhaps the most important benefit of customer revenue analysis is to determine the amount of revenue produced rather than the product/service sold.This is an important factor because we may notice that some customer only buy goods at sale and therefore generating far less revenue than selling it on the list price.
- It helps you to know your customer better and to comparing a customer with an average customer of the same ranking. It helps the producer to identify the customer to pay more attention to.
- It also helps to identify the traits of the customer, trends of the consumer and also revenue generated in total by ranking for an individual customer.
More benefits can be found on the customer-revenue analysis homework help provided by the myhomeworkhelp.com.
Problems in measuring Customer-revenue
According to customer-revenue assignment help, we have figured out that there are mainly two problems regarding determining the customer-revenue. In a subscription based business the type of revenue matters. Recurring revenues are worth more to investors than one time buyers, therefore,its necessary to divide the revenue into two groups ‘recurring’ and ‘non-recurring.’
You are usually asked to calculate monthly recurring revenue and annual recurring revenue.
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