Direct labor is an example of a:
A)unit-related cost.
B)batch-related cost.
C)facility-sustaining cost.
D)product-sustaining cost.

Question

Quizplus · Accepted Answer

Direct labor is a cost that varies with the number of units produced. As more units are produced, more direct labor is needed, making it a unit-related cost. Batch-related costs are incurred for each batch produced, facility-sustaining costs are fixed costs necessary to maintain the production facility, and product-sustaining costs are associated with a specific product and do not vary with the number of units produced.

Direct Labor Is an Example of A