The method used to assess real cost of providing services to an individual customer is
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The method used to assess real cost of providing services to an individual customer is activity based accounting
Explanation:
- The activity-based costing is a method of accounting which is used by companies to evaluate the cost involved in the various processes for manufacturing a product.
- It is used for allocating the various kinds of overhead costs in the required activities of direct and indirect cost for the purpose of production. It is process that is used by managers for allocating the costs involved as the overhead costs assigned for the task of a department for the production of a good
- It is method which helps the companies to establish precise costing decisions for the goods which makes every aspect of value added and non valued added feature visible for making a decision.
To know more about activity-based costing
What is the logistic costing and distinguish between activity based costing and mission based costing?
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