Through activity-based accounting, a business may discover that some customer groups are actually a source of losses for the firm.

Question

Quizplus · Accepted Answer

Activity-based accounting allows a business to identify the true costs associated with serving each customer group or product line. This can reveal that certain customer groups are actually causing losses for the firm, as their costs may exceed the revenue they generate.

Through Activity-Based Accounting, a Business May Discover That Some Customer