Which category includes costs for research and marketing of products?

The category that includes costs for research and marketing of products is known as product-level activities. This classification pertains to costs that are incurred specifically to support the development and promotion of individual products or product lines. Activities in this category, such as conducting research to develop a new product or spending on marketing campaigns, are necessary for the overall product lifecycle and contribute directly to a product’s success.

Product-level activities are distinct from other levels of activities in accounting, which include costs associated with facilities or production batches, as well as individual units of product. For instance, facility-level activities might include rent and utilities for the physical plant, batch-level activities could encompass costs incurred to set up production for a batch of items, and unit-level activities relate to costs that are incurred each time a unit is produced. Understanding where research and marketing costs fit into these categories helps businesses appropriately allocate their expenses and assess the profitability of different products.