Using activity-based costing to analyze customer profitability requires the analyst to determine the cost to acquire customers,which includes such activities as
A)process payments
B)conduct campaign to win back lost customers
C)issue refunds
D)deliver products

Question

Quizplus · Accepted Answer

The cost to acquire customers includes the activities of conducting a campaign to win back lost customers. The other options (process payments, issue refunds, and deliver products) are not related to acquiring customers, but rather to servicing them or handling transactions after they have already been acquired.

Using Activity-Based Costing to Analyze Customer Profitability Requires the Analyst