Machine operations costs that are related to the activity of running the automated molding machines are output unit-level costs.

Question

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Output unit-level costs are those costs that are directly related to the production of a unit or batch of products, such as the costs of materials, labor, and machine operations. Machine operations costs that are related to the activity of running the automated molding machines are one example of output unit-level costs.

Machine Operations Costs That Are Related to the Activity of Running