Activity-based costing information can be used to identify the relative cost of maintaining different customers. Managers can use that information, coupled with activity-based management techniques, to manage:
A) Customer quality
B) Customer profitability
C) Inventory levels
D) Staffing levels in the marketing department.

Question

Quizplus · Accepted Answer

Activity-based costing provides information about the costs associated with serving different customers. This information can be used to determine which customers are the most profitable and which may need to be dropped or have their service offerings changed. Activity-based management techniques can then be applied to manage the profitability of each customer relationship.

Activity-Based Costing Information Can Be Used to Identify the Relative