Asked by Araceli ArredondoLona on Apr 29, 2024

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In activity-based costing analysis, the manufacturing manager's salary is classified as a:

A) unit cost.
B) batch cost.
C) product cost.
D) facility cost.

Manufacturing Manager's Salary

The compensation paid to the individual responsible for overseeing the production processes and managing the manufacturing staff.

Activity-based Costing

A costing methodology that assigns overhead costs to products or services based on the activities required to produce them, aiming for more accurate product costing.

Facility Cost

The expenses associated with the physical location and maintenance of a business's operations, including rent, utilities, and property taxes.

  • Recognize the different classifications of costs in activity-based costing.
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Tereza PerezMay 01, 2024
Final Answer :
D
Explanation :
The manufacturing manager's salary is a facility cost as it is a fixed cost that is incurred regardless of the level of production. It is not directly related to the production of a specific unit, batch or product, and therefore cannot be classified as a unit, batch or product cost.