December 2017
Intermediate to advanced
390 pages
7h 51m
English
Ensuring that targeted customers are profitable is often perceived as a pricing tactic. However, focusing solely on pricing is one-dimensional because it minimizes such add-on features as product enhancements, additional service, and training.
Effectively measuring customer profitability includes accounting for the inputs that support customer-related activities. Robert S. Kaplan, a professor at Harvard Business School, has pioneered much of the research about activity-based costing (ABC), as well as the balanced scorecard. ABC is designed to help management measure the indirect costs involved in supporting their customers. Kaplan suggests that some companies have struggled to successfully ...
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