alleryStart learning →A cost incurred each time a unit of product is produced is described as a:
ABoard-level cost
BUnit-level cost
CCourt-level cost
DState-level cost
Answer & Solution
Correct answer: B. Unit-level cost
1. Costs are gathered at four different levels.
2. A unit-level cost is incurred each time a unit of product is produced.
3. It includes costs such as materials and labor.
4. So this is the unit level.
_Source: OpenStax Principles of Accounting Volume 2, Managerial Accounting (CC BY-NC-SA 4.0), Ch 6 'Activity-Based, Variable, and Absorption Costing', sections 6.1-6.5_
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