Which of the following costs are capacity-sustaining activities in the product cost hierarchy?
A)Product testing.
B)Energy to run machines.
C)Heat and lighting.
D)Direct Materials.

Question

Quizplus · Accepted Answer

Capacity-sustaining costs are those that support the overall capacity of the organization, such as heat and lighting, which are necessary to maintain the facility's environment.

Which of the Following Costs Are Capacity-Sustaining Activities in the Product