Customer-Sustaining Costs Is the Costs of Activities to Support Individual

question 23

True/False

Customer-sustaining costs is the costs of activities to support individual customers, regardless of the number of units or batches of product delivered to the customer.

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Definitions:

Contribution Margin

The difference between a company's total sales revenue and its variable costs.

Fixed Costs

Expenses that remain constant for a certain level of production or period, inclusive of rent, salaries, and insurance.

Financial Advantage

The benefit gained when financial resources are managed to maximize efficiency and profitability.

Contribution Margin

The margin between the income from sales and the costs that vary, illustrating the amount of revenue available for offsetting fixed expenses and yielding a profit.