Question

Which of the following statements about customer profitability are not true. 1. Activity-based costing can be...

Which of the following statements about customer profitability are not true.

1. Activity-based costing can be used to assist organizations in determining customer profitability

2. Customer profitability analysis is important for all organizations that have more than one customer

3. Differences in profitability amongst customers could be due to differences in the product mix purchased by customers

4. Differences in profitability amongst customers could be due to differences in the cost of serving the customers

Group of answer choices

Statement 1 only

Statement 2 only

Statement 3 only

Statement 4 only

None. All statements are true

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Homework Answers

Answer #1

Solution:

following statements about customer profitability are true:

1. Activity-based costing can be used to assist organizations in determining customer profitability

2. Customer profitability analysis is important for all organizations that have more than one customer

3. Differences in profitability amongst customers could be due to differences in the product mix purchased by customers

4. Differences in profitability amongst customers could be due to differences in the cost of serving the customers

Hence all statements are true

Hence last option "None. All statements are true" is correct.

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