Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred to sustain the overall manufacturing process is called a(n):
A) product-level cost.
B) batch-level cost.
C) unit-level cost.
D) facility-level cost.

Question

Quizplus · Accepted Answer

Facility-level costs are incurred to sustain the overall manufacturing process and are not dependent on the number of units, batches, or products produced.