An activity based costing hierarchy includes _____________?
Correct answer: D. all of aboveEconomics
- A. batch level
- B. output unit level
- C. facility and product sustaining
- D. all of aboveEconomics
Explanation
Activity-based costing commonly groups activities into unit-level, batch-level, product-sustaining, and facility-sustaining levels. Since batch, output-unit, and facility/product-sustaining levels are all included, all of the above is correct.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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