6. Cost allocation provides a service firm a basis for evaluating the:

a. Cost and profitability of its services.

b. Value of its services.

c. Manufacturing costs for the company.

d. The exact cost of each department.

7. Which one of the following is an advantage of the payback method of evaluating capital investment proposals?

a. It is linearly related to the net present value (NPV) of a proposed project.

b. It considers all possible future cash flows of the project.

c. It applies discounting to anticipated future cash flows.

d. It provides a rough measure of project risk.

8. Customer lifetime value is concerned with which of the following:

a. Customer loyalty.

b. Customer wealth.

c. Customer long-term value.

d. Customer short-term profitability.