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lara31 [8.8K]
3 years ago
5

Most companies allocate facility-level activity costs directly to products for decision-making purposes.True or false?

Business
1 answer:
Finger [1]3 years ago
4 0

Answer:

False

Explanation:

Facility-level costs are being the type of activity based cost activities and it simply sustains a facility’s general manufacturing process. We can say some samples about this type of costs:

1) The costs about depreciation or rent of a factory building  

2) The costs about salary of a plant manager

3) The costs about insurance, taxes, etc.  

4) The costs about training

As you see all about this cost mentioned only in manufacturing processes not in decision making.

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It also helps in making the low cost product at a very good quality.

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