Which of the following are not capacity-sustaining activities in the product cost hierarchy?
A)Plant management.
B)Building depreciation and rent.
C)Direct materials.
D)Heating and lighting.

Question

Quizplus · Accepted Answer

Direct materials are not considered as capacity-sustaining activities in the product cost hierarchy because they do not directly relate to the capacity of the production process. Plant management, building depreciation and rent, and heating and lighting, on the other hand, are all examples of capacity-sustaining activities, as they are essential for maintaining the production capacity of the plant.

Which of the Following Are Not Capacity-Sustaining Activities in the Product