The type of costs that cannot be traced for individual products but help in supporting an organization are classified as ___________?
Correct answer: B. facility sustaining costs
- A. individual sustaining costs
- B. facility sustaining costs
- C. sustained tracing
- D. support tracing
Explanation
Facility-sustaining costs support the organization as a whole and cannot be traced economically to individual products. Individual product costs and batch costs are narrower cost categories.
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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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