In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as

A. customer sustaining costs

B. customer output unit-level costs

C. customer batch-level costs

D. corporate sustaining costs

Answer: Option C

Solution(By Examveda Team)

In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as customer batch-level costs. Batch-level costs are expenses related to a group of products that cannot readily be traced back to an individual item. In other words, these production costs are incurred to produce a set of products or a batch and can't be allocated to an individual unit.