+1(805) 568 7317

28 should a company allocate its corporate costs to divisions objective 14 4 1 custo 4300506


28) Should a company allocate its corporate costs to divisions?


Objective 14.4


1) Customers making large contributions to the profitability of the company should:

A) be treated the same as other customers because all customers are important

B) receive a higher level of attention from the company than less profitable customers

C) be charged higher prices for the same products than less profitable customers

D) not be offered the volume-based price discounts offered to less profitable customers


2) Price discounts are influenced by:

A) the volume of product purchased

B) a desire to sell to a customer in an area with high-growth potential

C) negotiating skills of the sales person

D) All of these answers are correct.

3) Price discounts should NEVER be viewed as:

A) price discrimination

B) predatory pricing

C) unethical

D) All of the above are correct.


4) Customer revenues and ________ are the determinants of customer profitability

A) customer profile

B) customer costs

C) customer location

D) customer industry


5) To improve customer profitability, companies should track:

A) only the final invoice price of a sale

B) the volume of the products purchased by each customer

C) discounts taken by each customer

D) Both B and C are correct.


6) To improve customer profitability, companies should:

A) strictly enforce their volume-based price discounting policy

B) track discounts by customer

C) track discounts by sales person

D) Both B and C are correct.



"Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now