Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called ________.
A) input-output analysis
B) factor analysis
C) revenue-based costing (RBC)
D) activity-based costing (ABC)
E) future date costing (FDC)

Question

Quizplus · Accepted Answer

Customer profitability analysis is best conducted with the tools of activity-based costing (ABC) which assigns costs to products and services based on the activities involved in creating them. ABC provides more accurate and detailed information about the costs associated with serving specific customers, allowing for a thorough analysis of customer profitability.

Customer Profitability Analysis (CPA)is Best Conducted with the Tools of an Accounting