Clarify which cost definitions belong in CLV for decision‑making versus reporting. See how contribution margin changes acquisition, pricing, and budget calls.
Contribution margin subtracts variable costs from revenue; gross margin often excludes ______ like shipping or payment fees.
COGS entirely
taxes in every case
channel‑variable costs
inventory write‑offs by law
For media decisions, CLV should be computed on a ______ basis to reflect unit economics.
top‑line only
contribution
gross
impressions
Including fixed overhead in CLV typically ______ channel comparisons.
removes CAC entirely
clarifies elasticity
masks incremental differences
raises conversion rate
Discounts reduce CLV more than revenue because they also affect ______‑linked costs.
domain
server
margin
cookie
A proper payback view uses contribution CLV net of ______.
CTR
impressions
CAC
organic traffic
Refunds and chargebacks belong in ______ when computing contribution‑based CLV.
brand equity
amortization only
fixed overhead
variable costs
If shipping is subsidized, its cost should be treated as ______ in contribution CLV.
ignored
variable
fixed
capitalized
Gross‑margin CLV can be acceptable for high‑margin products, but for thin‑margin catalogs it tends to ______ CLV.
eliminate
equalize regardless
understate in all cases
overstate
Pricing changes that raise margin percent typically ______ contribution CLV all else equal.
leave unchanged
decrease
increase
reset to zero
To keep CLV comparable across channels, use the same ______ definition in every calculation.
timezone name
margin and cost
font family
cookie window
Starter
Good start—review definitions and setup to solidify your foundation.
Solid
Nice work—your grasp is strong; refine edge cases and assumptions.
Expert!
Outstanding—your CLV intuition and technique are practitioner‑level.
