In an activity-based costing system, plant depreciation would typically be classified as a:
A)unit-level activity.
B)batch-level activity.
C)product-sustaining activity.
D)facility-level activity.
E)period-level activity.

Question

Quizplus · Accepted Answer

Plant depreciation is a fixed cost that relates to the overall capacity of the facility and is not affected by the level of production or the number of units produced. Therefore, it would be classified as a facility-level activity in an activity-based costing system.

In an Activity-Based Costing System, Plant Depreciation Would Typically Be