Describe the value of activity-based customer costing. Explain how ABC can help a firm identify its true low-cost suppliers. Explain driver analysis and its role in process-value analysis. Explain what are value-added activities and non-value added activities. Identify and define four different ways to manage activities so that costs can be reduced.

4.2. Explain the difference between the unit cost of a product under absorption costing and variable costing. Explain the difference between contribution margin and segment margin. Explain how JIT helps minimize total inventory costs.

Answer rating: 100% (QA)

1 Value of ActivityBased Customer Costing Activitybased customer costing ABC provides a more accurate representation of the costs associated with serving different customers It assigns costs to custom... View the full answer