The costs of all the activities for individual products or services can be called ___________?
Correct answer: B. output-unit level costs
- A. purpose level costs
- B. output-unit level costs
- C. input-unit level costs
- D. activity level costs
Explanation
Output-unit-level costs arise from activities performed for each individual unit of a product or service, so they increase with the number of units produced. Batch-level and product-sustaining costs are triggered by batches or products rather than every unit.
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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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