Which of the following is a facility-level cost?
A)Testing products
B)Redesigning the process
C)Maintaining the factory
D)Materials handling

Question

Quizplus · Accepted Answer

Maintaining the factory is a facility-level cost as it is a cost incurred to keep the facility running smoothly, and it cannot be allocated to a specific product or department. Testing products, redesigning the process, and materials handling are all examples of unit-level costs, as they are costs that can be directly associated with a specific product or production process.

Which of the Following Is a Facility-Level Cost