Which of the following would most likely be a facility-level cost?
A) Depreciation on factory equipment
B) Depreciation on factory building
C) Depreciation of engineering equipment
D) Depreciation of setup equipment

Question

Quizplus · Accepted Answer

Depreciation on factory building is a facility-level cost because it pertains to the building where the entire facility operates, which typically includes the production processes and other related operations. The other options, such as A, C, and D, pertain to specific types of equipment or tools that may be used within the facility, but they do not necessarily relate to the entire facility. Thus, they are not considered facility-level costs.

Which of the Following Would Most Likely Be a Facility-Level