Costs of activities to sell each unit to a customer is an example of ________.
A) customer-sustaining costs
B) division-sustaining costs
C) customer output unit-level costs
D) distribution-channel costs

Question

Quizplus · Accepted Answer

The cost of activities to sell each unit to a customer falls under the category of customer output unit-level costs, which are costs associated with activities performed for each unit of a product or service sold to a customer. The other options are not directly related to this type of cost. Customer-sustaining costs are costs associated with maintaining a relationship with a customer, division-sustaining costs are costs associated with the operation of a business unit, and distribution-channel costs are costs associated with delivering products to customers through various channels.

Costs of Activities to Sell Each Unit to a Customer