All of the following are examples of facility level costs except: Select one: a. Costs of cleaning the workplace. b. Costs of custodial work. c. Costs of personnel support. d. Costs of receiving shipments. e. Costs of providing electricity.

Question

Business

Copper

22 December, 06:14

All of the following are examples of facility level costs except: Select one: a. Costs of cleaning the workplace. b. Costs of custodial work. c. Costs of personnel support. d. Costs of receiving shipments. e. Costs of providing electricity.

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Answers (1)

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Paul Haley · Answer 1

The answer is d. Costs of receiving shipments

Explanation:

The facility level costs are fixed, indirect costs that are incurred to support and to maintain the general facilities (factories, buildings ...) of the firm which are not easily allocated to a single product because these costs are incurred for the whole production, selling, administration process as a whole.

From the concept above, Cost of receiving shipments is not a facility level cost because it incur for production process and may be tracked, allocated to single product or a range of products. Thus, d. is the right answer.

a. Costs of cleaning the workplace; b. Costs of custodial work; c. Costs of personnel support; e. Costs of providing electricity are all costs that incurred to maintain the smooth/safe operation of the general facilities. Thus, they are not right choices.