Under the activity hierarchy of costs,costs incurred for the benefit of the entire entity (e.g.cost of operating the head office)are classified as:
A) unit level costs.
B) batch level costs.
C) product level costs.
D) facility level costs.

Question

Quizplus · Accepted Answer

Facility level costs are incurred for the benefit of the entire entity, such as costs associated with building and operating a facility or head office. Unit level costs are directly related to the production or delivery of a specific unit of product, batch level costs are related to a group of units produced together, and product level costs are related to the entire product line.

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