To satisfy theircustomers' value proposition and benefit from economies ofscale, companies often create customized_______ from individual products. This is also called a_______. The decision the management team needs to make is how to allocate the bundled revenue to each component of the bundle.

2.

There are twomethods: _______ and_______ revenue allocation. In combination with ABCsystems, the management team can examine detailed variance reports of_______, _______,_______, and_______ variance.

3.

This informs the team how well they are implementing their strategy. The team can also use the customer as cost object in an ABC system and conducta(n) _______ to determine whether to drop or addcustomers, stores, or branches to improve profit.

Terms provided:

composite unit

customer profitability analysis

market-share

market-size

sales-quantity

standalone

incremental

sales-mix

product bundles