Costs incurred to handle each unit sold would most likely be classified as a ________.
A) customer output unit-level cost
B) customer batch-level cost
C) customer-sustaining cost
D) corporate-sustaining cost

Question

Quizplus · Accepted Answer

Costs incurred to handle each unit sold are typically classified as customer output unit-level costs. These costs are directly related to the production and delivery of units to customers and are allocated to individual units of products or services. Examples of customer output unit-level costs include direct labor costs, direct material costs, packaging costs, and shipping costs.

Costs Incurred to Handle Each Unit Sold Would Most Likely