Under the activity hierarchy of costs,costs incurred for each unit of output e.g.the cost of fuel to operate machines are classified as:
A)unit level costs
B)batch level costs
C)product level costs
D)facility level costs

Question

Quizplus · Accepted Answer

Unit level costs are costs that are incurred for each unit of output or activity, such as the cost of fuel to operate machines. These costs are directly related to the level of production or activity and are necessary to produce each unit of output. Batch level costs are costs that are incurred for each group or batch of products or services, product level costs are costs that are incurred to support a specific product or service, and facility level costs are costs that are incurred to support the overall operation of the facility or organization.

Under the Activity Hierarchy of Costs,costs Incurred for Each Unit