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Customer Profitability Analysis (CPA) Definition and Explanation PDF Download

Learn Customer Profitability Analysis (CPA) definition in marketing with explanation to study “What is Customer Profitability Analysis (CPA)”. Study customer profitability analysis (cpa) explanation with marketing terms to review marketing course for online MBA programs.

Customer Profitability Analysis (CPA) Definition:

  • A means of assessing and ranking customer profitability through accounting techniques such as activity-based costing (ABC).

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Customer Profitability Analysis (CPA) Explanation:

It is a technique used in managerial accounting in order to determine product profitability to individual profitability ratio. However, it is based on different costing methods to find out exact cost and product profitability. In other words, customer profitability analysis is a process to gather information about various activities held in an organization, and their expenses regarding a particular product.

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