In an activity-based costing system, both organization-sustaining and facility-sustaining activities are assumed to be unaffected by the number of customers.

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Both organization-sustaining and facility-sustaining activities are considered as fixed costs and are not affected by the number of customers. Activity-based costing system assigns these costs to products or services based on other cost drivers like machine hours, direct labor hours, or number of setups.

In an Activity-Based Costing System, Both Organization-Sustaining and Facility-Sustaining Activities