A customer can be considered to be a cost object, in the decision to add or drop a particular customer.

Question

Quizplus · Accepted Answer

A customer can be considered a cost object because they generate costs (such as marketing, sales, support, and production costs) and revenues, and they have an impact on profitability. Therefore, when making decisions about adding or dropping a customer, it is important to consider the costs and benefits associated with that customer.

A Customer Can Be Considered to Be a Cost Object