Which of the following levels of costs should not be allocated to products for decision-making purposes?
A)Unit-level activities.
B)Batch-level activities.
C)Product-level activities.
D)Organization-sustaining activities.

Question

Quizplus · Accepted Answer

Organization-sustaining activities are general overhead costs that cannot be traced to specific products or services. Therefore, they should not be allocated to products for decision-making purposes as they do not vary based on changes in production or sales levels.

Which of the Following Levels of Costs Should Not Be