John is evaluating costs incurred at the factory where he works and is thinking about which hierarchies would apply to certain costs. He has just started to think about unit-level costs. Which of the following is false as it pertains to unit-level costs?
A) Direct Labor (DL) costs are an example of unit-level costs.
B) Direct Materials (DM) costs are an example of unit-level costs.
C) Most Manufacturing Overhead (MOH) costs are unit-level costs.
D) Unit-level costs increase in total with each additional unit of a product made.

Question

Quizplus · Accepted Answer

Choices A, B, and D all present information that is true as it pertains to unit-level costs. Choice C is the correct answer because it indicates that most MOH costs are unit-level costs when it is actually true that most MOH costs are not unit-level costs.

John Is Evaluating Costs Incurred at the Factory Where He