Question Details

Top management and general administration costs 


1.	To improve customer profitability, companies should 
	a.	strictly enforce their volume-based price discounting policy.
	b.	track discounts by customer.
	c.	track discounts by sales person.
	d.	both (b) and (c).

		

2.	A customer cost hierarchy categorizes costs related to customers into different cost pools on the basis of 
	a.	different types of cost drivers.
	b.	different benefits-received relationships.
	c.	different levels of cause-and-effect relationships.
	d.	all of the above.

		
3.	Costs incurred to process orders would MOST likely be classified as 
	a.	a customer output unit-level cost.
	b.	a customer batch-level cost.
	c.	a customer-sustaining cost.
	d.	a corporate-sustaining cost.

		

4.	Top management and general administration costs would MOST likely be classified as 
	a.	a customer output unit-level cost.
	b.	a customer batch-level cost.
	c.	a customer-sustaining cost.
	d.	a corporate-sustaining cost.

		

5.	The cost of visiting customers would MOST likely be classified as 
	a.	a customer output unit-level cost.
	b.	a customer batch-level cost.
	c.	a customer-sustaining cost.
	d.	a corporate-sustaining cost.





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