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Customer profitability is influenced by the activities that customers consume. Indicate whether each activity listed in the following table would be associated with a high
Customer profitability is influenced by the activities that customers consume. Indicate whether each activity listed in the following table would be associated with a high cost-to-serve customer or a low cost-to-serve customer. HIGH LOW COST-TO-SERVE COST-TO-SERVE Orders custom products in small quantities Uses standard delivery services Frequently changes delivery requirements Places orders using the Internet Requires little to no presales support Requires installation and training Requires frequent deliveries to accommodate just-in-time inventory system Pays slowly (high accounts receivable)
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