Flannery Inc.produces identical tables in large batches.Which of the following would most likely be a product-level cost for Flannery?
A)Quality control costs.
B)Salaries for purchasing and receiving personnel.
C)Research and development for a new line of tables.
D)Electricity costs for plant machinery.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Product-level costs are costs that are directly related to the production of a specific product. Research and development for a new line of tables is a product-level cost as it is specifically related to the development of a particular product.