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Answer the Following Questions Using the Information Below

Question 120

Multiple Choice

Answer the following questions using the information below:
The Sparky Electrical Products Company has an Electric Mixer Division and an Electric Lamp Division.Of a $30 000 000 bond issue,the Electric Mixer Division used $21 000 000 and the Electric Lamp Division used $9 000 000 for expansion.Interest costs on the bond totalled $1 500 000 for the year.
-The above interest costs would be considered a(n) :


A) product-sustaining cost.
B) organisation-sustaining cost.
C) output unit-level cost.
D) batch-level cost.

Correct Answer:

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