Which of the following is true for activity-based costing (ABC)?
A) ABC considers the real costs associated with each product.
B) With ABC, the company can estimate all costs coming from the customer, less revenue.
C) The tools of ABC can be used to conduct customer profitability analysis.
D) It identifies the costs of products and services based on the revenue they generate.
E) ABC allocates indirect costs in proportion to direct costs.
C
You might also like to view...
Which of the following is not a recommended data source to be used when writing a performance evaluation?
a. Customer survey results b. Quantitative performance records c. Medical information the employee has provided d. Commendations or recognition the employee has received
What should be created each time data must be obtained from an external partner?
A) a transaction data store B) a new browser window and DFD process to validate the window's data C) a unique Web form and DFD process to validate and process the data D) a Web form that extends the previous Web form