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Explain the relationship between cost allocation and customer profitability. Why is determining customer profitability important to a business, and how can appropriate cost allocation help accomplish that goal? Focus on the following five main factors that businesses can use to evaluate customer profitability:Discuss how and why examining these variables can help a business increase its overall profitability.

Likelihood of customer retention
Potential for sales growth
Long-run customer profitability
Increases in overall demand from having well known customers
The ability to learn from customers

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9948615

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