In customer cost hierarchy, the costs of all activities incurred to sell group of units to end consumers are classified as _____________?
Correct answer: A. customer batch-level costs
- A. customer batch-level costs
- B. customer output unit-level costs
- C. customer sustaining costs
- D. corporate sustaining costs
Explanation
Customer batch-level costs arise from activities performed for a group of units sold to a customer, such as processing one order or delivery batch. Costs for each individual unit are output-unit-level costs.
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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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