Which of the Following Levels of Costs Should Not Be

question 22

Multiple Choice

Which of the following levels of costs should not be allocated to products for decision-making purposes?

• A)Unit-level activities.
• B)Batch-level activities.
• C)Product-level activities.
• D)Organization-sustaining activities.

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Definitions:

Equipment

denotes tangible assets used in operations, such as machinery or office equipment, which have a useful life beyond one accounting period.

Liability

A company's financial debt or obligations that arise during the course of its business operations.

Expense

An expense constitutes the money spent or cost incurred in an organization's efforts to generate revenue, representing the consumption of assets.

Liability Account

A financial accounting ledger that represents debts or obligations a company owes to others.