Which category of the ABC hierarchy has costs that are primarily fixed and activities with little or no cause-and-effect relationship with costs?
A) Unit-level
B) Batch-level
C) Organisation-sustaining
D) Product-sustaining

Question

Quizplus · Accepted Answer

The organisation-sustaining category in the ABC hierarchy has costs that are primarily fixed and activities with little or no cause-and-effect relationship with costs. This includes costs like rent, utilities, salaries of top-level management, etc. These costs cannot be traced to specific products, services or activities and are incurred for the organization as a whole.

Which Category of the ABC Hierarchy Has Costs That Are