Chapter 5 Flashcards
1
Q
identifies customer service activities and cost drivers and determines the profitability of each customer or customer group.
A
Customer Profitability analysis
2
Q
specific task, action, or unit of work done. Can be single action or require several.
A
Activity
3
Q
economic element needed or consumed in performing activities
A
resource
4
Q
factor that causes or relates to a change in the total cost of an activity
A
cost driver
5
Q
measure of the demand placed on the resources by products, services, or customers.
A
activity consumption cost driver
6
Q
costing approach that assigns resource costs to cost objects such as products, services or customers based on activities performed for the cost objects.
A
activity based costing (ABC)
7
Q
A
