Asked by Carly Rosati on Jul 17, 2024
Verified
Facility-level costs vary with the number of units or batches produced.
Facility-level Costs
Refers to the expenses incurred by a facility or plant that are not directly tied to specific products or departments but are necessary for the overall operation.
- Master the distinction among diverse cost categories: direct, indirect, product-level, batch-level, unit-level, and facility-level.
Verified Answer
JA
Joshua AquinoJul 23, 2024
Final Answer :
False
Explanation :
Facility-level costs include fixed costs that do not vary with the number of units or batches produced, such as rent, property taxes, and insurance premiums. Therefore, their costs remain constant regardless of production volume.
Learning Objectives
- Master the distinction among diverse cost categories: direct, indirect, product-level, batch-level, unit-level, and facility-level.