Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 14 - Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis - Assignment Material - Questions - Page 578: 14-3

Answer

A company can track price discounting on a customer-by-customer basis by comparing the selling prices or contribution margins (CM) for each customer. This analysis helps identify which customers receive significant discounts and the impact of those discounts on the company's overall profitability.

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