Activity-Based Costing Tries to Identify the Real Costs Associated with Serving

question 135

True/False

Activity-based costing tries to identify the real costs associated with serving each customer.

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Definitions:

Touch Point

Any point at which a customer and the company come into contact.

Customer

A person or organization that buys goods or services from a store or business.

Company

An entity formed to engage in a business, trade, or industrial activity, typically characterized by its legal independence and ownership structure.

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers, often using data analysis to study large amounts of information.