If the cost of an activity increases with each hour of machine time, it is which of the following?
A)market-sustaining cost
B)output unit-level cost
C)batch-level cost
D)product-sustaining (service-sustaining)costs
E)facility-sustaining cost

Question

Quizplus · Accepted Answer

The cost increasing with each hour of machine time indicates that it is a variable cost and is directly related to the output produced, making it an output unit-level cost.

If the Cost of an Activity Increases with Each Hour