Customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as

A. customer level indirect costs

B. customer level direct costs

C. corporate level direct costs

D. corporate level indirect costs

Answer: Option A

Solution(By Examveda Team)

Customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as customer level indirect costs. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs.