How is the cost of a batch-level activity similar to the cost of a unit-level activity?
A)Both are incurred for each individual unit.
B)Both decrease as production volume increases.
C)Both increase as production volume increases.
D)Both are incurred for a group of units all at once.

Question

Quizplus · Accepted Answer

Both batch-level and unit-level activity costs increase as production volume increases, but they do so in different ways. Unit-level costs increase with each additional unit produced, while batch-level costs increase with each additional batch produced.

How Is the Cost of a Batch-Level Activity Similar to the Cost