Costs incurred to process orders 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 process orders would be classified as a customer batch-level cost because they are costs incurred to process a group or batch of customer orders rather than costs incurred for each individual customer. Customer batch-level costs are usually incurred for activities such as preparing purchase orders, handling and processing invoices, and shipping and delivering goods to customers.

Costs Incurred to Process Orders Would Most Likely Be Classified