Design costs are an example of:
A)organisation-sustaining costs.
B)product-sustaining costs.
C)batch-level costs.
D)unit-level costs.

Question

Quizplus · Accepted Answer

Design costs are incurred to develop new or improved products, which are specific to certain products and thus, fall under the category of Product-sustaining costs. These costs cannot be traced directly to individual units or batches but are necessary to maintain the level of production required to meet customer needs.

Design Costs Are an Example Of