Which of the Following Is Not a Cost Resulting from a Unit-Level

question 69

Multiple Choice

Which of the following is not a cost resulting from a unit-level activity?

• A) The cost of electricity to power manufacturing equipment
• B) The cost of sending monthly statements to customers
• C) The indirect cost of glue used on each product
• D) The per unit cost of packaging goods

---

Definitions:

Residual Income

The amount of income that an individual or company has after all personal debts and expenses, including a mortgage, have been paid.

Operating Income

Earnings before interest and taxes (EBIT), reflecting a company's profit from its core business operations.

Divisional Assets

Resources and property allocated to a specific division within a larger organization, instrumental in generating revenue.

Responsibility Center

A business segment or department within an organization whose manager is accountable for specific financial and operational outcomes.