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)Vendor-sustaining.

Question

Quizplus · Accepted Answer

Vendor-sustaining cost is not part of the product cost hierarchy of expenses. The product cost hierarchy includes material costs, labor costs, and overhead costs, which are further classified into unit-level, batch-level, product-level, and facility-level costs. Capacity-sustaining, product-sustaining, and customer-sustaining costs are all part of the product cost hierarchy, as they are related to the production or sale of the product.

The Cost Hierarchy Can Be Used to Organize Cost Information