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) Delivery times
D) Supplier satisfaction.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) provides detailed information on the costs associated with specific activities involved in producing a product or service, including those related to servicing customers. This information can help managers understand which customers are more or less profitable, enabling them to make informed decisions to enhance customer profitability through targeted strategies and resource allocation.

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