If the cost of an activity increases with the quantity of items used, 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

An output unit-level cost is a cost that varies with the quantity of items produced or services rendered. As the activity cost increases with the quantity of items used, it fits the definition of an output unit-level cost.

If the Cost of an Activity Increases with the Quantity