Daisy Company is a mid-sized organization that creates flower-themed home décor items that are sold to both large local and regional stores. They would like to become more organized and are dividing and segmenting their costs into different hierarchies. Which of the following would be considered something other than a product/process-level cost?
A) The depreciation expense for their cutting machine that is used on the assembly-line
B) The expense incurred to acquire personal protective equipment for employees
C) The salary for John, the supervisor
D) The salary for Susan, the plant manager

Question

Quizplus · Accepted Answer

This question requires you to evaluate which costs would be considered product/process-level. Costs in this category typically include: equipment depreciation, equipment maintenance, supervisor salary, and workers' personal protective equipment. Choice D is the only choice of the four that is not a product/process-level cost and would be assigned to a different part of the hierarchy. Choices A, B, and C each contain a cost that would be categorized as product/process-level.

Daisy Company Is a Mid-Sized Organization That Creates Flower-Themed Home