If activity-based costing is used, set-ups would be classified as a
A)unit-level activity.
B)product-level activity.
C)batch-level activity.
D)facility-level activity.

Question

Quizplus · Accepted Answer

Set-ups would be classified as a batch-level activity because they are typically performed for a group of products or a batch of production rather than for each individual unit. Batch-level activities are those that are required to produce a batch of products, such as setting up equipment, ordering materials, and inspecting finished goods.

If Activity-Based Costing Is Used, Set-Ups Would Be Classified as a