ACCT 3130 Chapter 14

These are per unit.

• Customer Output Unit-Level Costs

• Customer Batch-Level Costs

• Customer-Sustaining Costs

• Distribution-Channel Costs

• Division-Sustaining Costs

Cost per customer order or per delivery.

• Customer Output Unit-Level Costs

• Customer Batch-Level Costs

• Customer-Sustaining Costs

• Distribution-Channel Costs

• Division-Sustaining Costs

Cost to support individual customers regardless of number of units or batches.

• Customer Output Unit-Level Costs

• Customer Batch-Level Costs

• Customer-Sustaining Costs

• Distribution-Channel Costs

• Division-Sustaining Costs

These costs relate to the distribution channel rather than to each unit or customer.

• Customer Output Unit-Level Costs

• Customer Batch-Level Costs

• Customer-Sustaining Costs

• Distribution-Channel Costs

• Division-Sustaining Costs

Distribution-Channel costs are divided into different customers.

• True

• False

Costs that cannot be traced to a product, customer, or a distribution channel.

• Customer Output Unit-Level Costs

• Customer Batch-Level Costs

• Customer-Sustaining Costs

• Distribution-Channel Costs

• Division-Sustaining Costs

The division manager's salary would be an example of ___.

• Customer Output Unit-Level Costs

• Customer Batch-Level Costs

• Customer-Sustaining Costs

• Distribution-Channel Costs

• Division-Sustaining Costs

Individual managers have no control over division-sustaining costs because there is no cause & effect. If included, this could have negative impact to managers' motivation.

• True

• False

Companies need a cost driver or there will be a negative effect to managers' motivation.

• True

• False

Customer-Profitability Analysis

_____

- COGS

= Gross Profit/Gross Margin

- Total Customer-Level Operating Costs

= Customer-Level Operating Income