Costs that are not related to any specific product,batch,or unit of production are referred to as facility-level costs.

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Facility-level costs are costs that relate to the operating capacity and general function of a facility or a company as a whole. Examples of facility-level costs include rent, property taxes, insurance, salaries of senior management, and utilities expenses. These costs are not related to any specific product, batch, or unit of production, as they exist regardless of the level of production or sales volume.

Costs That Are Not Related to Any Specific Product,batch,or Unit