Reducing the cost per unit of product, per customer, or per distribution channel are
examples of cost reduction objectives. The appropriate measures are obvious: the cost
per unit of the particular cost object. Trends in these measures will tell whether or not
the costs are being reduced. For these objectives, the accuracy of cost assignments is
especially important. Activity-based costing can play an essential measurement role, especially
for selling and administrative costs—costs not usually assigned to cost objects
like customers and distribution channels