ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
A software company introduces a customer relationship management (CRM) system. The sales director says it will help identify which customers are most profitable. Which accounting information must be integrated with the CRM data to make this possible?
Customer revenue combined with the cost to serve each customer, including discounts, support and credit costs, must be linked to the CRM data. Profitability is a financial measure, so non-financial data such as complaint numbers or account age cannot establish it on their own.
- ARevenue and the cost to serve each customer, including discounts, support and credit costsCorrect
- BThe total number of customer complaints received in the year
- CThe length of time each customer has had an email account with the company
Explanation
Customer profitability needs revenue less the costs of serving each customer, such as discounts, support and credit costs, which come from accounting records. Complaint counts and account age are non-financial and cannot show profitability alone.
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