BU467 Lecture Notes - Lecture 5: Weighted Arithmetic Mean
Document Summary
Chapter 4 revenue and customer profitability analysis. Revenue object anything for which a separate measurement of revenue is desired. Customer output unit level costs costs to sell each output unit to a customer. Customer batch level costs costs related to a group of units sold to a customer. Customer sustaining costs costs to support individual customers, regardless of the number of units or batches delivered to the customer. Distribution channel costs costs related to a particular distribution channel. Corporate sustaining costs costs that cannot be traced to individual customers or distribution channels. Price discounting reduction of selling prices to encourage increases in customer purchases. Customer cost hierarchy categorizes costs related to customers into different cost pools on the basis of different: types of drivers, cost allocation bases, degrees of difficulty in determining cause and effect or benefits received relationships. Level 1: static budget variance = actual results static budget amount.
