Which of the following is not a cost resulting from a unit-level activity? a) The cost of electricity to power manufacturing equipment. b) The indirect cost of glue used on each product. c) The cost of sending monthly statements to customers. d) The per unit cost of packaging goods.

Which of the following is not a cost resulting from a unit-level activity? a) The cost of electricity to power manufacturing equipment. b) The indirect cost of glue used on each product. c) The cost of sending monthly statements to customers. d) The per unit cost of packaging goods.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Which of the following is not a cost resulting from a unit-level activity?
a) The cost of electricity to power manufacturing equipment.
b) The indirect cost of glue used on each product.
c) The cost of sending monthly statements to customers.
d) The per unit cost of packaging goods.

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