Which of the following activity costs should usually be ignored when making a decision regarding whether to eliminate a product?
A) Product-level costs
B) Batch-level costs
C) Unit-level costs
D) Facility-level costs

Question

Quizplus · Accepted Answer

Facility-level costs are the costs associated with operating an entire facility or factory and are typically not affected by a single product. Therefore, they should be ignored when making a decision regarding whether to eliminate a product. Product-level costs, batch-level costs, and unit-level costs are all directly affected by the production of a specific product and should be considered when making such a decision.

Which of the Following Activity Costs Should Usually Be Ignored