Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called

A. customer cost hierarchy

B. customer profitability hierarchy

C. treasury costing hierarchy

D. partial costing hierarchy

Answer: Option A

Solution(By Examveda Team)

Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called customer cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.