If activity-based costing is used, modifications made by engineering to the product design of several products would be classified as a
A)product-level activity.
B)batch-level activity.
C)unit-level activity.
D)facility-level activity.

Question

Quizplus · Accepted Answer

Activity-based costing aims to allocate costs to the specific activities that cause them. Modifying product design would be classified as a product-level activity because it is specific to the particular product being modified.

If Activity-Based Costing Is Used, Modifications Made by Engineering to the Product