Which costs are least likely to be allocated to units under ABC?
A) Facility-sustaining costs
B) Batch-level costs
C) Product-sustaining costs
D) Unit-level costs

Question

Quizplus · Accepted Answer

Facility-sustaining costs are fixed costs that are not caused by specific products or activities, so they are not allocated under ABC. The other cost categories (batch-level, product-sustaining, and unit-level) are all variable costs that are more closely tied to specific products or activities and are part of the ABC allocation process.

Which Costs Are Least Likely to Be Allocated to Units