Q324
In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as
A.
customer sustaining costs
B.
customer output unit-level costs
C.
customer batch-level costs
AnswerD.
corporate sustaining costs
Answer: Option C
Solution
Answer: Option C
Solution:
In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as customer batch-level costs. Batch-level costs are expenses related to a group of products that cannot readily be traced back to an individual item. In other words, these production costs are incurred to produce a set of products or a batch and can't be allocated to an individual unit.