The customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as _________?
Correct answer: A. customer level indirect costs
- A. customer level indirect costs
- B. customer level direct costs
- C. corporate level direct costs
- D. corporate level indirect costs
Explanation
These costs support a customer rather than a particular product unit, batch, or corporate-wide function, so they are grouped as customer-level indirect costs. The corporate-level options refer to costs benefiting the organisation as a whole.
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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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