Activity-Based Costing (ABC) Requires That Its Users Separate Costs by the Level

Multiple Choice

Activity-Based Costing (ABC) requires that its users separate costs by the level and then by the type of activity. For a manufacturing business, this would entail separating activity costs into Manufacturing Overhead (MOH) and nonmanufacturing period costs. Which of the following would be considered MOH at the product/process-level?

A) Design costs
B) Factory utilities
C) Marketing for a new product
D) Research and development