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A company has a very small raw materials inventory area, so has to purchase raw materials...

A company has a very small raw materials inventory area, so has to purchase raw materials needed for each production run. Under ABC costing, this raw material inventory purchase cost would be categorized as:

A. Unit level cost

B. Batch level cost

C. Product level cost

D. Production sustaining cost

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Answer #1

answer is option A) Unit level cost

The company has to purchase raw materials needed for each production run.

Unit‐level activities occur every time a service is performed or a product is made.

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