Product-level costs do not vary with the number of units or batches produced.

Question

Quizplus · Accepted Answer

Product-level costs are costs that do not vary with the number of units or batches produced. Examples of product-level costs include the salaries of product design staff, the cost of obtaining regulatory approvals for the product, and the cost of developing and maintaining manufacturing equipment. These costs are typically incurred regardless of the level of production activity and are therefore considered fixed costs.

Product-Level Costs Do Not Vary with the Number of Units