How does activity$-$based costing $($ABC$)$ contribute to customer profitability analysis in a manufacturing company?

ABC assigns manufacturing overhead costs to products in a more logical manner than traditional costing methods, enabling more accurate customer profitability analysis

ABC simplifies the cost allocation process by using a single overhead rate for all products, making it easier to analyze customer profitability

ABC focuses on reducing production costs

ABC uses a standard costing method that averages all overhead costs across products, streamlining profitability analysis.