Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called activity-based costing (ABC).

Question

Quizplus · Accepted Answer

CPA involves analyzing the revenue and costs associated with serving individual customers. ABC provides a more accurate way of assigning costs to specific activities and products, which can help in determining the profitability of each customer. Therefore, the statement is true.

Customer Profitability Analysis (CPA)is Best Conducted with the Tools of an Accounting