Question

Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility)...

Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility) may be used more than once and some answers may not be used at all.

Research and development

Electricity

Building security costs

Quality control

Design costs

Homework Answers

Answer #1

Research and development - Product

R&D is done to develop new products.

Electricity - It can be either unit or Facility

Electricity expense might be fixed, which means that it will be for whole facility.

Else, if electricity is for production line, that that will be unit based.

There is nothing specificaaly mentioned in question.

Building security costs - Facility

Building security is to support whole production.

Quality control - Batch

Quality control is done batch wise. We pick up samples from batch to check the quality

Design costs - Product

Designing is done on product level.

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