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Sort costs by their level

Exercise and reference answers

Items
  1. Group
    Unit level
    Item
    Direct materials
  2. Group
    Unit level
    Item
    Direct labor
  3. Group
    Batch level
    Item
    Receiving parts
  4. Group
    Batch level
    Item
    Purchasing parts
  5. Group
    Product level
    Item
    Testing costs
  6. Group
    Product level
    Item
    Engineering costs
  7. Group
    Factory level
    Item
    Rent on the plant
  8. Group
    Factory level
    Item
    Plant supervisor
Groups
  1. Item
    Unit level
  2. Item
    Batch level
  3. Item
    Product level
  4. Item
    Factory level
Instructions
Drag each cost to the level at which it is incurred.

Explanation

_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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