Using activity-based costing to analyze customer profitability requires the analyst to determine the cost to acquire the customer,which includes such activities as
A)promoting the product.
B)conducting a campaign to win back lost customers.
C)running advertising campaigns.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct, as the cost to acquire a customer involves various activities such as promoting the product, running advertising campaigns, and conducting campaigns to win back lost customers. Activity-based costing considers all direct and indirect costs associated with these activities to determine the true cost of acquiring a customer, which can then be used to analyze customer profitability.

Using Activity-Based Costing to Analyze Customer Profitability Requires the Analyst