The method used to assess real cost of providing services to an individual customer is
A)cost based accounting
B)activity based accounting
C)turnover based accounting
D)price based accounting

Question

Quizplus · Accepted Answer

Activity-based accounting (also known as activity-based costing) is the method used to assess the real cost of providing services to an individual customer by identifying and evaluating all the specific activities involved in providing those services. This approach allows for a more accurate allocation of costs to individual products, services, or customers based on the actual activities and resources used.

The Method Used to Assess Real Cost of Providing Services