Fescue, Inc. is a company that produces grass seed that they sell to regional businesses. They are in the process of examining their facility-level costs. Which of the following lists is made up of costs that would be classified as facility-level?
A) Insurance, Factory Depreciation, Office Manager's Salary
B) Insurance, Rent, Supervisor Salary
C) Rent, Plant Manager's Salary, Income Taxes
D) Rent, Plant Manager's Salary, Property Taxes

Question

Quizplus · Accepted Answer

This question requires you to evaluate which costs would be considered facility-level. Costs in this category typically include: Factory Depreciation, Factory Rent, Plant Manager's Salary, Property Taxes, and Property Insurance. Choice D is the only choice of the four that only includes facility-level costs. Choices A, B, and C each have two facility-level costs, but supervisor salary, income taxes, and office manager's salary would not be included here.