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

Question

Quizplus · Accepted Answer

Capacity-sustaining costs are part of the product cost hierarchy because they are incurred to support the production process's capacity, directly affecting the cost of producing a product.

The Cost Hierarchy Can Be Used to Organize Cost Information