Is the cost of an off-airport warehouse considered to be a unit-level, batch-level, product-level, or facility-level cost as it relates to: a) The airport store
b) An individual bottle of water

a. Facility Level

b. Facility Level

Explanation:

Facility level costs are costs incurred to maintain the company in its entirety. It is not directly ascribable to any specific products or product lines.

In the case of the Airport store, the off-airport warehouse will be used to store all their storable products so this relates to an activity that benefits the entire store.

For the individual bottle of water, this is also a facility level cost as the off-airport warehouse will be used to store a number of bottles and as such is for the benefit of the entire company producing the bottles.

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