An example of a product-sustaining cost is Question 21 options: labels for a can of soup...

An example of a product-sustaining cost is Question 21 options: labels for a can of soup setting up equipment warranty servicing plant manager's salary

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Expert Solution

Product sustaining cost or services sustaining cost :-

Cost of activities undertaken to sustain a product or a particular service regardless of number of units or batches produced in the organisation.

This type of cos can be seen in activity based costing

These type of cost in enhance the life of the product.

Examples :-

Warranty service costs :-

This warranty servicing cost can be incurred to all the products produced in the organisation but it is not sure that hundred percent of products which is produced by an organisation will have this type of cost.

This warranty servicing cost will be incurred to the the products which are produced defective or as to increase its life.

This warranty service cost is very product specific.

by incurring this type of warranty services the product can sustain in the competitive market.

As a conclusion we can say that, the warranty servicing cost can be incurred to all the products but it will not be e actually incurred 200% of the units produced in urination but only incurred to those products which are defective. and the reason for increasing to those products which are defective is to get product to be sustained in the competitive market.

And all other options like

Labels for I can will be equal to all the hundred percent of products produced in an organisation and setting up of an equipment, plant manager salary is very common and it will be allocated to all the the units produced in a organisation.

So, the product sustaining cost in the given options are warranty servicing cost.

Please note that this answer is not a copied answer. the same question was answered by the same expert with the same answer. For more information you can verify the name of of the expert who answered the both questions.

These are all the information required to solve the above given question.

I hope, all the above mentioned information and explanations are useful and helpful to you.

Thank you.

ekkarill92 answered 1 year ago

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