Purchase order, set-up, and inspection costs are examples of:
A)Unit-level costs.
B)Batch-level costs.
C)Product-level costs.
D)Facility-level costs.
E)Department-level costs.

Question

Quizplus · Accepted Answer

Purchase order, set-up, and inspection costs are activities that are performed at the batch-level, as they are incurred every time a batch is produced, regardless of the number of units within that batch. These costs are not incurred at the unit-level, as they do not vary with the number of units produced. They are also not product-level costs, as they are specific to the batch production process and not to individual products. Finally, they are not facility-level or department-level costs, as they are not related to the overall operation of the facility or department.

Purchase Order, Set-Up, and Inspection Costs Are Examples Of