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In customer cost hierarchy, costs of individual customer support activities are classified as

A. discretionary channel costs

B. corporate-sustaining costs

C. distribution-channel costs

D. customer-sustaining costs

Answer: Option D

Solution(By Examveda Team)

In customer cost hierarchy, costs of individual customer support activities are classified as customer-sustaining costs. A customer-sustaining cost is the cost of resources consumed to service a customer regardless of the number of units sold to the customer.

This Question Belongs to Management >> Management Accounting

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