Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers.It's based on the specific costs of servicing a customer's orders relative to how,how much,what,and when a customer orders.

Question

Quizplus · Accepted Answer

Activity-based costing is a method of assigning costs to products or services based on the specific activities they require. In the case of customer orders, activity-based costing can help to identify the specific costs of servicing each order, taking into account factors such as how much the customer orders, what they order, and when they order. This allows firms to more accurately allocate costs to specific customers, rather than simply spreading the costs evenly across all customers.

Firms Today Are Beginning to Use Techniques Such as Activity-Based