Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management to design a pattern for a new dress style?
A) Unit-level activity
B) Batch-level activity
C) Product-level activity
D) Facility-level activity

Question

Quizplus · Accepted Answer

Product-level activity is focused on activities related to specific products or product lines, such as designing a pattern for a new dress style. This is a higher level activity that goes beyond individual units or batches and impacts the entire product line. Therefore, the dress manufacturer using activity-based management would likely use product-level activity in this scenario.

Which One of the Four Levels of the Cost Hierarchy