Costs that are common to many different activities within an organization are known as ____ costs.
A)product- or process-level
B)organizational-level
C)batch-level
D)unit-level

Question

Quizplus · Accepted Answer

Organizational-level costs are those that are common to many different activities within an organization, such as rent, salaries of top executives, and insurance. These costs are not specific to any one product or service and cannot be traced directly to individual units of output or batches. Product- or process-level costs are incurred for specific products or processes, batch-level costs are incurred for each batch of products, and unit-level costs are incurred for each unit of output.

Costs That Are Common to Many Different Activities Within an Organization