Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred each time a new rug design is developed is called a(n):
A) product-level cost.
B) batch-level cost.
C) unit-level cost.
D) facility-level cost.

Question

Quizplus · Accepted Answer

Product-level costs are incurred for activities related to specific products, such as developing a new rug design.