Facility-level activities and costs are incurred no matter how many units,batches,or products are produced in the plant.

Question

Quizplus · Accepted Answer

Facility-level activities and costs are fixed and do not vary based on the number of units or batches produced. These costs are incurred to maintain the overall capacity and functionality of the plant. Examples of facility-level costs include rent or mortgage, property taxes, building maintenance, and equipment upkeep.

Facility-Level Activities and Costs Are Incurred No Matter How Many