FastTec sells electronics in retail outlets and on the Internet. It uses activity-based budgeting in the preparation of its selling, general, and administrative expense budget. Which of the following costs would the company likely classify as a unit-level expense on its budget?

Question

Quizplus · Accepted Answer

Retail outlet sales commissions are costs that vary with each unit of product sold and are therefore considered a unit-level expense.

FastTec Sells Electronics in Retail Outlets and on the Internet