John Is Evaluating Costs Incurred at the Factory Where He

Multiple Choice

John is evaluating costs incurred at the factory where he works and is thinking about which hierarchies would apply to certain costs. He has just started to think about unit-level costs. Which of the following is false as it pertains to unit-level costs?

A) Direct Labor (DL) costs are an example of unit-level costs.
B) Direct Materials (DM) costs are an example of unit-level costs.
C) Most Manufacturing Overhead (MOH) costs are unit-level costs.
D) Unit-level costs increase in total with each additional unit of a product made.