Which of the following classifications of costs in the customer-cost hierarchy would be most appropriate for the costs of activities to sell each unit to a customer?
A) customer-sustaining costs
B) division-sustaining costs
C) customer output unit-level costs
D) distribution-channel costs

Question

Quizplus · Accepted Answer

Customer output unit-level costs refer to the costs of activities to sell each unit to a customer. These costs are directly related to the individual units sold and include activities such as order processing, delivery, and invoicing. Therefore, option C is the most appropriate classification for the costs of activities to sell each unit to a customer.

Which of the Following Classifications of Costs in the Customer-Cost