In customer cost hierarchy, the costs of individual customer support activities are classified as ____________?
Correct answer: D. customer-sustaining costs
- A. discretionary channel costs
- B. corporate-sustaining costs
- C. distribution-channel costs
- D. customer-sustaining costs
Explanation
Customer-sustaining costs arise from activities performed for an individual customer, such as special support or account management. Distribution-channel costs serve an entire channel rather than one customer.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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