Q339
In customer cost hierarchy, costs of individual customer support activities are classified as
A.
discretionary channel costs
B.
corporate-sustaining costs
C.
distribution-channel costs
D.
customer-sustaining costs
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In customer cost hierarchy, costs of individual customer support activities are classified as customer-sustaining costs. A customer-sustaining cost is the cost of resources consumed to service a customer regardless of the number of units sold to the customer.