An activity-based costing system may focus on customers rather than products.

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Activity-based costing can also be used to analyze and understand the costs associated with serving different customer segments. By identifying the activities that are required to serve specific customers or customer groups, costs can be assigned to those activities and ultimately to the customers. This information can then be used to make decisions about pricing, sales and marketing strategies, and resource allocation.

An Activity-Based Costing System May Focus on Customers Rather Than