asked 172k views
2 votes
Facility-sustaining costs: costs that cannot be traced to individual products but support the organization as a ________.

asked
User Auxdx
by
8.8k points

1 Answer

5 votes

Final answer:

Facility-sustaining costs support an organization as a whole, encompassing expenses such as utilities and services required for the operation but not directly tied to individual products.

Step-by-step explanation:

Facility-sustaining costs are expenditures that cannot be directly associated with producing a particular product but instead support the organization as a whole. They are essential for maintaining the basic support systems necessary for an organization's operations. These costs include but are not limited to expenses related to power, communications, transportation, water, sanitation, and even education systems. For instance, a restaurant maintains connections with suppliers of food, furniture, kitchen equipment, and the building it occupies. Similarly, a complex business such as a large manufacturing factory or a hospital will incur facility-sustaining costs that ensure the smooth operation of its many job classifications and functions without being directly traceable to a specific unit of product.

answered
User ClosureCowboy
by
7.0k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.