alleryStart learning →The chief executive's salary stays unassigned in ABC. What are such costs termed?
AUnit level costs
BBusiness sustaining
CBatch level costs
DProduct specific
Answer & Solution
Correct answer: B. Business sustaining
Costs with no meaningful way to trace to products are called business sustaining and are not assigned.
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Related questions
In the CIMA description of ABC, activities are assigned to what?In which journal did Cooper and Kaplan publish ABC articles from 1988?Drucker said ABC also records the cost of what?What limits the use of ABC, especially in services?What is a danger of ABC, like other cost allocation approaches?Why did indirect costs rise relative to direct costs in modern factories?How does ABC assign costs, rather than using broad arbitrary percentages?Broad overhead percentages on common costs risk what outcome among products?