Under the activity hierarchy of costs,unit level costs are:
A) costs incurred for the benefit of a specific product family.
B) costs incurred for each unit of output.
C) costs incurred for the benefit of the entire entity.
D) costs incurred for the benefit of a group of products simultaneously.

Question

Quizplus · Accepted Answer

Unit level costs are costs that are incurred for each unit of output produced by a company, regardless of the volume of output. These costs include direct materials, direct labor, and other expenses that are directly related to producing a single unit of a product. Unit level costs are variable costs that increase or decrease based on changes in the level of production, and they are not affected by changes in production volume.

Under the Activity Hierarchy of Costs,unit Level Costs Are