The cost hierarchy can be used to organize cost information for decision-making.Which cost isnot part of the product cost hierarchy of expenses?
A)Capacity-sustaining.
B)Product-sustaining.
C)Customer-sustaining.
D)Employee-sustaining.

Question

Quizplus · Accepted Answer

Employee-sustaining is not part of the product cost hierarchy. The product cost hierarchy includes direct materials, direct labor, and manufacturing overhead. Capacity-sustaining, product-sustaining, and customer-sustaining costs are all part of the product cost hierarchy.

The Cost Hierarchy Can Be Used to Organize Cost Information