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
Century Point has been approached by a leading law firm to provide a specialised membership for their employees. Costs associated with this membership would best be described as:
A) Unit Level
B) Product Sustaining
C) Facility Sustaining
D) Customer Sustaining

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
Century Point has been approached by a leading law firm to provide a specialised membership for their employees. Costs associated with this membership would best be described as:
A) Unit Level
B) Product Sustaining
C) Facility Sustaining
D) Customer Sustaining

Quizplus · Accepted Answer

Costs associated with providing a specialised membership for a specific customer (in this case, a leading law firm) are best described as customer sustaining costs. These are costs incurred to support specific customers rather than the production of specific products or services.

Century Point Is a Modern Business Club in the Inner