The MOST likely example of an output unit-level cost is:
A)engineering costs.
B)general administrative costs.
C)machine depreciation.
D)paying suppliers for orders received.

Question

Quizplus · Accepted Answer

Machine depreciation is an output unit-level cost because the depreciation cost will depend on the number of units produced. As more units are produced, the machine will wear out faster and require more maintenance and replacement, which will increase the depreciation cost. Engineering costs, general administrative costs, and paying suppliers are not necessarily tied to the production of each unit and therefore, cannot be classified as output unit-level costs.

The MOST Likely Example of an Output Unit-Level Cost Is