In an activity-based cost management (ABCM) system, facility-related costs are those that are incurred to:
A) sustain the company's marketing program.
B) maintain the plant's production capacity.
C) support the research and development process.
D) cause a change in the engineering plans for a product.

Question

Quizplus · Accepted Answer

Facility-related costs in an ABCM system are those incurred to maintain the plant's production capacity, as they are necessary for the overall operation and upkeep of the facility.

In an Activity-Based Cost Management (ABCM) System, Facility-Related Costs Are