Costs for an automobile manufacturer


Consider the following costs for an automobile manufacturer, which have been classified as unit, batch, product, customer, or facility level. Which is of the following is most likely an INCORRECT matching of the cost of the activity to the activity level?

A. Re-design of the 2003 Taurus - Product Level Cost

B Maintaining cooling equipment in the factory - Facility Level Cost

C. Installation of tires on a Ford Explorer - Product Level Cost

D. Negotiating the annual contract to provide Budget Rental Car-Customer Level Cost

E. All of the above are correct classifications of activities and activity level

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Accounting Basics: Costs for an automobile manufacturer
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