Product-sustaining (service-sustaining),and facility-sustaining costs are equivalent terms in ABC systems.

Question

Quizplus · Accepted Answer

Product-sustaining costs refer to costs that are specifically related to the development and production of a particular product or service, while facility-sustaining costs are costs that are associated with maintaining the facility or infrastructure that is used to produce the products or services. While they are both types of costs that are relevant to an ABC system, they are not equivalent terms.

Product-Sustaining (Service-Sustaining),and Facility-Sustaining Costs Are Equivalent Terms in ABC Systems