If the cost of an activity increases with the number of purchase orders placed, rather than to the quantity of items purchased, it is which of the following?
A)market-sustaining cost
B)output unit-level cost
C)facility-sustaining cost
D)product-sustaining (service-sustaining)costs
E)batch-level cost

Question

Quizplus · Accepted Answer

The cost that increases as the number of purchase orders is placed is a batch-level cost, which is incurred each time a batch of orders is processed. The other options do not match the scenario described in the question.

If the Cost of an Activity Increases with the Number