Depreciation on production machinery in a food processing facility is best described as a:
A) Facility Sustaining activity
B) Unit level activity
C) Customer Sustaining activity
D) Batch level activity

Question

Quizplus · Accepted Answer

Facility Sustaining activity is an activity that is performed to maintain the overall functionality of the facility. Depreciation on production machinery is an example of a Facility Sustaining activity because it is necessary to maintain the production machinery in order to keep the facility running.

Depreciation on Production Machinery in a Food Processing Facility Is