Asked by
Connie Woodall
on Nov 01, 2024
Verified
Which of the following is a correct matching of terms?
A) Depreciation of equipment is a batch-level cost
B) Cutting a table leg is a unit-level cost
C) Insurance is a product-level cost
D) Package design is a capacity-sustaining cost
E) None of the choices are correct
Capacity-Sustaining Cost
Costs incurred to maintain the production capacity of a company at current levels, including costs for maintenance and repair of equipment.
Batch-Level Cost
Costs that are incurred as a result of producing a batch of products, rather than the production process as a whole.
Unit-Level Cost
A cost that is directly incurred for each unit of production or service provided.
- Differentiate among various cost hierarchies such as unit-level, batch-level, product-level, and capacity-sustaining costs.
Verified Answer
CF
Learning Objectives
- Differentiate among various cost hierarchies such as unit-level, batch-level, product-level, and capacity-sustaining costs.