A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A unit-level activity is
A) redesigning the process.
B) setting up the production process.
C) testing the product.
D) insuring the factory.

Question

Quizplus · Accepted Answer

Unit-level activities are those that are performed for each unit produced, such as testing the product. Redesigning the process is considered a facility-level activity, setting up the production process is considered a batch-level activity, and insuring the factory is considered a product-level activity.

A Manufacturer of Audio Equipment Employing an Activity-Based Cost Hierarchy