In costing and budgeting hierarchy, an example of product sustaining cost is __________?
Correct answer: D. product design cost
- A. initial offering cost
- B. batch marketing cost
- C. product marketing cost
- D. product design cost
Explanation
Product-sustaining costs support an entire product line, regardless of the number of batches or units produced; product design is an example. Initial offering and batch marketing costs are tied to other activity levels.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the budgeted revenue is $20000 and the breakeven revenue is $15000, then the margin of safety will be __________?
The amount of money by which the total revenues exceed the breakeven revenues is classified as _________?
If the fixed cost is $15000 and the breakeven revenue is $45000 then the contribution margin will be ___________?
If an actual price of material is $700 and the budgeted price is $900, then the ___________?
An expected performance of the company is also known as ____________?
If the actual payment to labor is $1200 and the budgeted rate is $1000, then the labor price variance would be __________?