Salary of top management and general-administration costs is an example of ________.
A) customer output unit-level costs
B) customer batch-level costs
C) distribution-channel costs
D) corporate-sustaining costs

Question

Quizplus · Accepted Answer

Salary of top management is an example of corporate-sustaining costs, which are costs that cannot be traced to specific products or services but are necessary for the overall operation of the company. General-administration costs may also fall under this category. Options A, B, and C refer to costs that are directly related to specific customers or distribution channels.

Salary of Top Management and General-Administration Costs Is an Example