Question

Which of the following is not a broad, cost classification category typically
used in activity-based costing?​

Answer 1

Answer:

Management-level. In an activity-based costing system, direct materials used would typically be classified as a: unit-level cost.

Answer 2

Management level is not a broad, cost classification category typically

used in activity-based costing.

Cost classification:

• The classification of a collection of costs into separate categories is what cost classification implies.
• A categorization system is used to draw the attention of management to particular costs that are deemed more important than others or to participate in financial forecasting.

Management level:

• Management levels are indeed the divisions in a firm's levels of power and accountability.
• Top executives, mid-level leadership, and first-line managerial staff are the most common management levels.
• Such levels define the responsibilities of various management roles, including who submits to them and who reports to them.
• Every level of management is responsible for a distinct component of a company's growth, performance, and employee happiness.

Hence management level is not a cost classification category.

Complete question:

Which of the following is not a broad, cost classification category typically used in activity-based costing?

A. Unit-level.

B. Batch-level.

C. Product-sustaining level.

D. Facility-level.

E. Management-level.