Century Point is a modern business club in the inner city of Brisbane. It is owned by Silvera Property Holdings, which operates additional properties in Auckland, Christchurch and Singapore. Century Point has 6 separate areas each with corporate facilities for various membership groups. Also on premises is a gymnasium, restaurant, and pool. The business club is organised in 5 departments: front desk, housekeeping, food & beverage, and customer relations. As part of its operation, Century Point regularly incurs the following costs:
General Manager's salary
Cleaning and maintenance costs
Utility costs
Depreciation on gym equipment
Advertising
Food and beverage costs
Depreciation on restaurant equipment
Administration salaries for the Silvera is best described as a(n) :
A) Facility-sustaining cost
B) Organisation-sustaining cost
C) Product-sustaining cost
D) Batch-level cost

Question

Century Point is a modern business club in the inner city of Brisbane. It is owned by Silvera Property Holdings, which operates additional properties in Auckland, Christchurch and Singapore. Century Point has 6 separate areas each with corporate facilities for various membership groups. Also on premises is a gymnasium, restaurant, and pool. The business club is organised in 5 departments: front desk, housekeeping, food & beverage, and customer relations. As part of its operation, Century Point regularly incurs the following costs: 
General Manager's salary
Cleaning and maintenance costs
Utility costs
Depreciation on gym equipment
Advertising
Food and beverage costs
Depreciation on restaurant equipment
Administration salaries for the Silvera is best described as a(n) :
A) Facility-sustaining cost
B) Organisation-sustaining cost
C) Product-sustaining cost
D) Batch-level cost

Quizplus · Accepted Answer

Administration salaries for Silvera, which owns and operates Century Point among other properties, are costs that support the entire organization, not just one facility or specific activity within a facility. Therefore, they are best described as organization-sustaining costs.

Century Point Is a Modern Business Club in the Inner