In customer cost hierarchy, the costs of all the incurred activities to sell a unit of product are classified as __________?
Correct answer: B. customer output unit-level costs
- A. customer sustaining costs
- B. customer output unit-level costs
- C. customer batch-level costs
- D. corporate sustaining costs
Explanation
Customer output-unit-level costs arise from activities performed for each individual unit sold, such as processing or delivering one unit. Batch-level costs instead relate to a group of units, so option c is not appropriate.
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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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