Cost Accounting Customer Service Definition 
Accounting Tools
APRIL 17, 2024
An organization that does not pay attention to life cycle costing is more likely to develop goods and acquire assets for the lowest immediate cost, not paying attention to the heightened servicing costs of these items later in their useful lives - the result can be steadily declining profits, due to the increased servicing costs incurred.
Accounting Tools
MAY 5, 2024
The allocation is useful for tracking the cost of a customer service call or the cost to design a new product. Business relationship cost objects. These include the costs incurred for a supplier or customer. The allocation is useful for tracking the cost of dealing with another entity.
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Accounting Tools
JULY 23, 2024
Operational Cost Objects A cost object can be within a company, such as a department, machining operation, production line, or process. For example, you could track the cost of designing a new product, or a customer service call, or of reworking a returned product.
Accounting Tools
MARCH 11, 2024
As yet another example, a report could identify those instances in which customer service personnel were unable to settle a customer’s complaint on the first contact. In all three cases, these reports identify specific instances in which there are issues that management should correct.
Accounting Tools
MAY 15, 2023
Related Courses Activity-Based Costing Cost Accounting Fundamentals Cost Management Guidebook What is Cost Structure? Cost structure refers to the types and relative proportions of fixed costs and variable costs that a business incurs.
Accounting Tools
JULY 30, 2023
Related Courses Cost Accounting Fundamentals What is Cost Classification? Cost classification involves the separation of a group of expenses into different categories. Several types of cost classifications are noted below. This information is used to determine individual customer profitability.
Accounting Tools
FEBRUARY 15, 2024
Related AccountingTools Courses Activity-Based Costing Activity-Based Management New Manager Guidebook Examples of Activity-Based Management One way to use activity-based management is to determine the total profitability of a customer, based on its purchases, sales returns , and use of the time of the customer service department.
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