In activity-based costing analysis, the manufacturing manager's salary is classified as a:
A) unit cost.
B) batch cost.
C) product cost.
D) facility cost.

Question

Quizplus · Accepted Answer

The manufacturing manager's salary is a facility cost as it is a fixed cost that is incurred regardless of the level of production. It is not directly related to the production of a specific unit, batch or product, and therefore cannot be classified as a unit, batch or product cost.

In Activity-Based Costing Analysis, the Manufacturing Manager's Salary Is Classified