Which of the following types of costs are usually not allocated to products?
A) Unit-level costs
B) Batch-level costs
C) Facility-level costs
D) Product-level costs

Question

Quizplus · Accepted Answer

Facility-level costs, also known as facility-sustaining costs, are usually not allocated to products as they are costs incurred to maintain a facility's overall functioning and are not directly related to producing a specific product. Examples of such costs are rent, property taxes, and facility maintenance expenses. In contrast, unit-level costs, batch-level costs, and product-level costs are all types of costs that can be allocated to products.

Which of the Following Types of Costs Are Usually Not