Q334
Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called
A.
customer cost hierarchy
AnswerB.
customer profitability hierarchy
C.
treasury costing hierarchy
D.
partial costing hierarchy
Answer: Option A
Solution
Answer: Option A
Solution:
Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called customer cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.