Organization-sustaining activities definition

What are Organization-Sustaining Activities?

Organization-sustaining activities are those actions taken to maintain the operations of a business. For example, a company must pay property taxes, utilities, and insurance, irrespective of what it does to produce goods for sale or provide services to customers. Organization-sustaining activities tend not to vary with the level of activity, and so are more likely to be classified as fixed costs. These activities cannot usually be directly traced to the production of goods or the provision of services.

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