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Monetary = the highest value of all purchases by the customer expressed in relation to some benchmark value For example, if the monetary benchmark allocated a score of 10 to annual spend over $500, for a customer who had made three purchases in the last year, the most recent being 3 months ago, and spent $600 in the year, their scores would be ...
A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of value to an end customer. The concept comes from the field of business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. [1]
Customer lifetime value can also be defined as the monetary value of a customer relationship, based on the present value of the projected future cash flows from the customer relationship. [1] Customer lifetime value is an important concept in that it encourages firms to shift their focus from quarterly profits to the long-term health of their ...
A unit of account [1] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt.
Major value factors (from which the value hierarchy is developed) include the following direct customer value: benefits to customers/clients, e.g. convenient access, product enhancement social: benefits to society as a whole, e.g. reducing CO 2 emissions
The cost drivers thus are the link between the activities and the cost of the product. Generally, the cost driver for short term indirect variable costs may be the volume of output/activity; but for long term indirect variable costs, the cost drivers will not be related to volume of output/activity.
In economics, gross output (GO) is a measure of the value of production of new goods and services during an accounting period.Gross output represents the total value of sales by producing enterprises (their gross revenue or turnover) in an accounting period (a quarter or a year), before subtracting the value of intermediate goods used up in production from the value of sales.
Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives.It is used to determine options which provide the best approach to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements. [1]