Customer-cost hierarchy
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Customer-cost hierarchy is hierarchy that categorizes costs related to customers into different cost pools on the basis of different types of cost drivers, or cost-allocation bases, or different degrees of difficulty in determining cause-and-effect or benefits-received relationships.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Customer-cost hierarchy. Hierarchy that categorizes costs related to customers into different cost pools on the basis of different types of cost drivers, or cost-allocation bases, or different degrees of difficulty in determining cause-and-effect or benefits-received relationships.
