Question

Molding and sanding each unit of product would most likely be classified as a ________ cost.

Answer 1

Molding and sanding each unit of the product would most likely be classified as a​ (B) unit-level cost.

What do we mean by unit-level cost?

• A unit cost is a total cost incurred by a business to produce, store, and sell one unit of a specific product or service.
• The cost of goods sold is synonymous with unit costs (COGS).
• This accounting metric includes all fixed and variable costs associated with the manufacture of a product or service.
• Every time service or a product is provided, unit-level activities take place.
• Unit-level activities include the costs of direct materials, direct labor, and machine maintenance.
• Molding and sanding each unit of the product, for example, would almost certainly be classified as a unit-level cost.

Therefore, molding and sanding each unit of the product would most likely be classified as a​ (B) unit-level cost.

Know more about unit-level costs here:

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The correct question is given below:
Molding and sanding each unit of the product would most likely be classified as a​ ________ cost.

(A) product-level

(B) unit-level

(C) batch-level

(D) facility-level