Alice is a new cost accountant working at a local factory in her hometown. She has been given the task of ensuring that costs for the company have been put into the correct cost hierarchies. She is currently evaluating a list and searching for batch-level costs. Which of the following is comprised of costs that would be included in her list of batch-level costs?
A) Cleaning/Maintenance, Machine Set-up, Movement of Materials
B) Indirect Materials, Supervisor Salary, Direct Labor
C) Movement of Materials, Cleaning/Maintenance, Equipment Maintenance
D) Property tax, Insurance, Machine Set-up

Question

Quizplus · Accepted Answer

This question requires you to evaluate which costs would be considered batch-level. Costs in this category typically include: movement of materials, machine set-up, and cleaning/maintenance. Choice A is the only choice of the four that only includes batch-level costs. Choices B, C, and D each contain one or two batch-level costs, but property tax, insurance, supervisory salary, indirect materials, direct labor, and equipment maintenance would not be included here.

Alice Is a New Cost Accountant Working at a Local