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26 March, 13:12

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

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  1. 26 March, 13:15
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    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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