Which of the following is a true statement regarding product-level costs?
A) Product-level costs are only relevant to a decision when adding a product to a company's product line.
B) Product-level costs are generally relevant to outsourcing decisions.
C) Product-level costs are generally relevant to special order decisions.
D) Product-level costs are incurred to support the entire company.

Question

Quizplus · Accepted Answer

Product-level costs are costs that are incurred to support a particular product or product line. These costs are generally relevant to outsourcing decisions as the cost of producing a product in-house versus outsourcing it depends on the product-level costs associated with it.

Which of the Following Is a True Statement Regarding Product-Level