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Whenever we want to learn about any topic, the first and foremost thing is to know what the topic means. So here we need to know what customer profitability actually is. The profit that any company derives by providing products or services to their customer or group of customers through a specific time period is termed as customer profitability. A clear idea of the topic is necessary that can be done with fully allocated customer profitability homework help.
Purpose of accounting customer profitability
It is very important for any organization to know their customer profitability. The knowledge helps in taking various decisions about the business.
Thus customer profitability can form the basis of decision making in various prospects, clarity of the topic can be derived with fully allocated customer profitability homework help.
When should a firm measure its customer profitability?
Customer profitability is such an aspect of business that there is no specific time to measure it. All firms function as their products or services get sold, and the people to whom they are sold are the customers. Thus the best time to start measuring customer profitability is as soon as possible rather immediately.
There are firms who measure this when their business is not at its peak but this could b a wrong decision because if the calculation is done before the fall, then it could be easier to prevent the same. So it is always advisable that companies account their customer profitability at least twice in a financial year to keep their business on the go.
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