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Estimating current profitability at the individual customer level is important to distinguish the more profitable customers from the less profitable ones. This is also a first step in developing estimates of customers' lifetime values. This exercise, however, takes on additional complexities when applied to an intermediary in a supply chain, such as a distributor, because the costs of servicing a retail customer include not only those incurred directly in servicing this customer but also those incurred by the distributor in dealing with its own vendors for goods supplied to this customer. The authors develop a general model and measurement methodology to relate customer profitability to customer characteristics in a supply chain. The authors show how heterogeneity in customer purchasing characteristics leads to important profit implications and illustrate the implementation of the methodology using data from a large distributor that supplies to grocery and other retail businesses.Rakesh Niraj is a doctoral candidate in marketing, Mahendra Gupta is Associate Professor of Accounting, and Chakravarthi Narasimhan is Philip L. Siteman Professor of Marketing, John M. Olin School of Business, Washington University in St. Louis. The authors thank the three anonymous JM reviewers for their comments and suggestions on previous versions of the article. Workshop participants at the

In this paper, we examine the relative efficiency of audit production by one of the then Big 6 public accounting firms for a sample of 247 geographically dispersed audits of U.S. companies performed in 1989. To test the relative efficiency of audit production, we use both stochastic frontier estimation (SFE) and data envelopment analysis (DEA). A feature of our research is that we also test whether any apparent inefficiencies in production, identified using SFE and DEA, are correlated with audit pricing. That is, do apparent inefficiencies cause the public accounting firm to reduce its unit price (billing rate) per hour of labor utilized on an engagement? With respect to results, we do not find any evidence of relative (within‐sample) inefficiencies in the use of partner, manager, senior, or staff labor hours using SFE. This suggests that the SFE model may not be sufficiently powerful to detect inefficiencies, even with our reasonably large sample size. However, we do find apparent inefficiencies using the DEA model. Audits range from about 74 percent to 100 percent relative efficiency in production, while the average audit is produced at about an 88 percent efficiency level, relative to the most efficient audits in the sample. Moreover, the inefficiencies identified using DEA are correlated with the firm's realization rate. That is, average billing rates per hour fall as the amount of inefficiency increases. Our results suggest that there are moderate inefficiencies in the production of many of the subject public accounting firm's audits, and that such inefficiencies are economically costly to the firm.

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ObjectiveTo analyse the design and operational status of India’s civil registration and vital statistics system and facilitate the system’s development into an accurate and reliable source of mortality data.MethodsWe assessed the national civil registration and vital statistics system’s legal framework, administrative structure and design through document review. We did a cross-sectional study for the year 2013 at national level and in Punjab state to assess the quality of the system’s mortality data through analyses of life tables and investigation of the completeness of death registration and the proportion of deaths assigned ill-defined causes. We interviewed registrars, medical officers and coders in Punjab state to assess their knowledge and practice.FindingsAlthough we found the legal framework and system design to be appropriate, data collection was based on complex intersectoral collaborations at state and local level and the collected data were found to be of poor quality. The registration data were inadequate for a robust estimate of mortality at national level. A medically certified cause of death was only recorded for 965 992 (16.8%) of the 5 735 082 deaths registered.ConclusionThe data recorded by India’s civil registration and vital statistics system in 2011 were incomplete. If improved, the system could be used to reliably estimate mortality. We recommend improving political support and intersectoral coordination, capacity building, computerization and state-level initiatives to ensure that every death is registered and that reliable causes of death are recorded – at least within an adequate sample of registration units within each state.