In activity-based costing analysis,the manufacturing manager's salary is classified as:
A) unit cost.
B) batch cost.
C) product cost.
D) facility cost.

Question

Quizplus · Accepted Answer

The manufacturing manager's salary would be classified as a facility cost since it is not directly associated with the production of specific units or batches of products. Facility costs are overhead costs that are incurred to support the entire manufacturing facility and are usually allocated to products based on some predetermined cost driver, such as machine hours or labor hours.

In Activity-Based Costing Analysis,the Manufacturing Manager's Salary Is Classified As