The basic concepts involved in activity-based costing (ABC)can be used to determine customer profitability as well as product costs.

Question

Quizplus · Accepted Answer

The basic concepts involved in activity-based costing (ABC) can be applied to determine customer profitability as well as product costs. However, the only thing that differs is the cost object. In product costing, the cost object is the product while in customer profitability analysis, the cost object is the customer.

The Basic Concepts Involved in Activity-Based Costing (ABC)can Be Used