To more accurately assess customer profitability,organisation-sustaining costs should be allocated.

Name: To more accurately assess customer profitability,organisation-sustaining costs should be allocated.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

Organisation-sustaining costs are not caused by any specific customer and are related to overall operations. Allocating these costs to specific customers can distort the assessment of customer profitability, as these costs do not change with the number of customers or their specific activities.

To More Accurately Assess Customer Profitability,organisation-Sustaining Costs Should Be Allocated