Using activity-based costing to analyze customer profitability requires the analyst to determine the cost to maintain customers,which includes such activities as
A)billing customers.
B)processing payments.
C)issuing refunds.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct. Activity-based costing (ABC) requires the identification and analysis of all activities associated with maintaining customers, including billing customers, processing payments, issuing refunds, and any other costs related to customer service or support. By assigning these costs to individual customers or customer segments, ABC can provide a more accurate measure of customer profitability and help firms identify areas where they can improve efficiency and reduce costs.

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