Vidyalelo
Management · Q335

Management Accounting

Graduate and Post Graduate · Management · question 335

Q335

In customer cost hierarchy, costs of all incurred activities to sell a unit of product are classified as

A.
customer sustaining costs
B.
customer output unit-level costs
Answer
C.
customer batch-level costs
D.
corporate sustaining costs

Answer: Option B

Solution

Answer: Option B
Solution:
In customer cost hierarchy, costs of all incurred activities to sell a unit of product are classified as customer output unit-level costs. Output unit-level costs are the costs of activities performed on each individual unit of a product or service.