Which of the following costs should not be included in product costs for internal management reports that are used for decision-making?
A)Costs of unit-level activities.
B)Costs of batch-level activities.
C)Costs of product-level activities.
D)Costs of organization-sustaining activities.

Question

Quizplus · Accepted Answer

Organization-sustaining activities, also known as facility level activities, are not related to the production of a specific product or service and therefore should not be included in product costs for internal management reports that are used for decision-making. Unit-level, batch-level, and product-level activities are all directly related to the production of specific products or services and should be included in product costs for decision-making purposes.

Which of the Following Costs Should Not Be Included in Product