Which of the following items would be classified as a product-related cost in an activity-based cost management (ABCM) system?
A) Change order to meet a new customer's specification.
B) Movement of materials for products in production.
C) Long-term lease payments for factory equipment.
D) Insurance and property taxes on factory building.

Question

Quizplus · Accepted Answer

Change orders to meet a new customer's specification are directly related to the product and are considered product-related costs in an ABCM system.

Which of the Following Items Would Be Classified as a Product-Related