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How can a company's revenues and costs differ across customers? How do customer-profitability profiles help managers? Why do managers prepare cost-hierachy based operating income statements?

  1. How can a company's revenues and costs differ across customers?
  2. How do customer-profitability profiles help managers?
  3. Why do managers prepare cost-hierachy based operating income statements?
  4. What criteria should managers use to guide cost-allocation decisions?
  5. What are two key decisions managers must make when collecting and allocating costs in indirect-cost pools?

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