Which of the following is an example of customer activities in the product cost hierarchy?
A)Plant management,building depreciation,rent,heating and lighting,market research,and customer records.
B)Market research,customer records,and promotion.
C)Machine setups and quality inspections.
D)Energy to run machines and direct materials.

Question

Quizplus · Accepted Answer

Customer activities in the product cost hierarchy refer to the costs incurred to reach and interact with customers. Market research, customer records, and promotion are all examples of activities that involve engaging with customers. Plants management, building depreciation, rent, heating and lighting are considered facility-level costs, while machine setups and quality inspections are batch-level costs, and energy to run machines and direct materials are unit-level costs.

Which of the Following Is an Example of Customer Activities