The costs of undertaken activities is to support individual products and are known as __________?
Correct answer: D. product sustaining costs
- A. expected sustaining
- B. input sustaining
- C. output sustaining
- D. product sustaining costs
Explanation
Product-sustaining costs support an individual product or service regardless of how many units or batches are produced. Examples include product design, product testing and maintaining product specifications.
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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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More Cost Accounting questions
In the activity based costing method implementation, an output unit level costs are classified as ____________?
The costs of all the activities for individual products or services can be called ___________?
The budgeted total cost in indirect cost pool, is divided by budgeted total quantity of the cost allocation base, is calculated by _________?
The hierarchy which is based on different types of cost allocation and drivers, to categorize cost pool activity is classified as __________?
The type of costs that cannot be traced for individual products but help in supporting an organization are classified as ___________?
The cost pool category, which have the similar cause and effect relationship, with each cost driver uses as an allocation base is classified as __________?