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Activity-Based Costing (ABC) and Customer Profitability Analysis : A company implements activity-based costing (ABC) to allocate overhead costs to customer segments. Discuss how ABC helps

Activity-Based Costing (ABC) and Customer Profitability Analysis: A company implements activity-based costing (ABC) to allocate overhead costs to customer segments. Discuss how ABC helps identify the true cost of serving different customer groups and analyze the implications for pricing decisions, product profitability analysis, and customer relationship management. Discuss challenges in implementing ABC for customer profitability analysis and strategies to overcome these challenges.

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