To determine the cost of serving a specific type of customer,such as the retail customer,which of the following are followed?
A) first step, cost assignment and second step, cost allocation
B) first step, cost accumulation and second step, cost assignment
C) first step, cost allocation and second step, cost apportionment
D) first step, cost absorption and second step, cost attribution

Question

Quizplus · Accepted Answer

The correct process for determining the cost of serving a specific type of customer involves first accumulating all costs associated with serving that customer type (cost accumulation) and then assigning those accumulated costs to the specific customer or customer group (cost assignment).

To Determine the Cost of Serving a Specific Type of Customer,such