________ categorizes costs related to customers into different cost pools on the basis of either different classes of cost drivers or different degrees of difficulty in determining the cause-and-effect (or benefits-received) relationships.
A) Customer-profitability analysis
B) Customer revenues
C) Customer cost hierarchy
D) Price discounting

Question

Quizplus · Accepted Answer

This is the definition of customer cost hierarchy, which is used to categorize costs related to customers into different cost pools based on different classes of cost drivers or different degrees of difficulty in determining cause-and-effect relationships. Customer-profitability analysis focuses on analyzing the profitability of different customer segments, customer revenues focuses on the revenue generated by different customers, and price discounting refers to reducing the price of a product or service.

________ Categorizes Costs Related to Customers into Different Cost Pools