The costs of activities related to a group of units of a product or service rather than each individual unit of product or service are ________.
A)batch-level costs
B)input unit-level costs
C)output unit-level costs
D)product-sustaining costs
E)facility-sustaining costs

Question

Quizplus · Accepted Answer

Batch-level costs are incurred for a group of units of a product or service rather than each individual unit. These costs are associated with activities that are performed each time a batch of products or services is produced, regardless of the number of units in the batch. Examples of batch-level costs include setup costs, quality control costs, and ordering costs. Input unit-level costs and output unit-level costs are associated with each individual unit produced, while product-sustaining costs and facility-sustaining costs are associated with the overall product or service and the facility where it is produced, respectively.

The Costs of Activities Related to a Group of Units