Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management for a production run of a certain style of dress in blue?
A) Unit-level activity
B) Batch-level activity
C) Product-level activity
D) Facility-level activity

Question

Quizplus · Accepted Answer

The batch-level activity involves the costs associated with performing activities related to a group of units, such as setting up the machines for a production run of a certain style of dress in blue. Therefore, the dress manufacturer using activity-based management for this production run would use the batch-level activity.

Which One of the Four Levels of the Cost Hierarchy