If activity-based costing is used, electricity usage would be an example of a
A)unit-level activity.
B)batch-level activity.
C)product-level activity.
D)facility-level activity.

Question

Quizplus · Accepted Answer

Electricity usage would be a unit-level activity because it is directly related to the production of each individual unit of a product. It is a cost that increases with each additional unit produced, making it a variable cost and a unit-level activity.

If Activity-Based Costing Is Used, Electricity Usage Would Be an Example