alleryStart learning →Costs of purchasing and receiving materials are given as an example of a:
AClient-level cost
BBranch-level cost
CBatch-level cost
DShare-level cost
Answer & Solution
Correct answer: C. Batch-level cost
1. The level depends on what triggers the cost.
2. A batch-level cost is incurred every time a batch of items is manufactured.
3. Costs associated with purchasing and receiving materials are the example given.
4. So this is the batch 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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Related questions
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