Today's companies try to adapt their offers and terms to different buyers. ________ accounting tries to identify the real costs associated with serving each customer. It allocates indirect costs to the activities that use them and are tagged back to each customer.
A) Target costing
B) Activity-based cost
C) Direct product profitability
D) Experience cost
E) Cost accounting

Question

Quizplus · Accepted Answer

The description provided refers to activity-based cost accounting, which is a method of allocating indirect costs to specific activities and then tagging them back to each customer. It is used to determine the real costs of serving each customer and helps companies adapt their offers and terms accordingly. Target costing, direct product profitability, and experience cost are all related concepts but do not accurately match the description provided. Cost accounting is a broader term that encompasses various methods and techniques for measuring and managing costs.

Today's Companies Try to Adapt Their Offers and Terms to Different