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
Which cost listed above is most likely to be a unit level cost?
A) Food and Beverage costs
B) Utility costs
C) Housekeeping supplies
D) General manager's salary

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
Which cost listed above is most likely to be a unit level cost?
A) Food and Beverage costs
B) Utility costs
C) Housekeeping supplies
D) General manager's salary

Quizplus · Accepted Answer

Food and beverage costs are most likely to be unit level costs because they vary directly with the number of units (meals or drinks) produced or sold.

Century Point Is a Modern Business Club in the Inner