Under the activity hierarchy of costs,costs incurred for the benefit of a group of products simultaneously,e.g.machine set-up costs are classified as:
A)unit level costs
B)batch level costs
C)product level costs
D)facility level costs

Question

Quizplus · Accepted Answer

Machine set-up costs are incurred for a group of products simultaneously, which suggests that they are batch level costs. Unit level costs are those that are incurred for each individual unit produced. Product level costs are those that are specific to a particular product or product line. Facility level costs are those that are incurred for the entire production facility, such as rent and property taxes.

Under the Activity Hierarchy of Costs,costs Incurred for the Benefit