When determining customer profitability,activity-based costing can be used to analyze:
A)orders processed.
B)sales visits.
C)special packaging and handling.
D)billing and collections.
E)All of thesE.

Question

Quizplus · Accepted Answer

Activity-based costing involves identifying specific activities that contribute to the cost of serving a customer, and then assigning those costs to individual customers. All of the options listed - orders processed, sales visits, special packaging and handling, and billing and collections - are examples of activities that can be included in a customer profitability analysis using activity-based costing. Therefore, option E is the best choice.

When Determining Customer Profitability,activity-Based Costing Can Be Used to Analyze