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Domain 1Objective 5

1.5 Describe Recurring Revenue Financial Terms 700-805 Practice Questions (Page 3)

Part of the Customer Experience domain, which accounts for 10% of the 700-805 exam. Cisco does not publish an official question count, but from its 90-minute exam (~35–60 total, ~4–6 in this domain), expect 1–1 from this objective — we provide 17 practice questions to prepare you well beyond it. (estimate)

17questions here
4free pages
5concepts
10%of the exam

Questions 11–15

  1. 11foundation · easy

    Which metric aggregates all revenue streams over a year, including both recurring and non-recurring revenue?

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  2. 12application · easy

    A Cisco partner sells hardware and recurring services. In the last quarter, the partner had 50 orders. The total revenue from these orders was $250,000, of which $100,000 was from one-time hardware sales and $150,000 was from annual service contracts. The partner wants to understand the typical purchase size for all orders. What is the average order value (AOV) for the quarter?

    Select an answer first
  3. 13expert · medium

    A Cisco partner is tracking recurring revenue. At the start of the year, the partner had $200,000 in ARR. During the year, the partner signed a new customer with $50,000 ARR on July 1, and another customer with $30,000 ARR on October 1. One customer with $20,000 ARR churned on September 30. What is the partner's ARR at the end of the year?

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  4. 14expert · medium

    A Cisco partner is analyzing customer purchasing behavior to improve marketing. The partner has two customer segments. Segment 1 has an AOV of $5,000 and a purchase frequency of 6 times per year. Segment 2 has an AOV of $8,000 and a purchase frequency of 3 times per year. Both segments have an average customer lifespan of 5 years. Which segment has the higher LTV, and what is the difference?

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  5. 15application · easy

    A Cisco partner tracks customer purchasing behavior. In the last month, the partner had 20 orders. The total revenue was $180,000, of which $60,000 was from recurring service renewals and $120,000 was from new hardware sales. The partner wants to understand the average value of each order to identify upselling opportunities. What is the average order value (AOV) for the month?

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