Batch-level costs are assigned using
A)non-unit-based activity drivers.
B)unit-based activity drivers.
C)cost pools.
D)departmental rates.

Question

Quizplus · Accepted Answer

Batch-level costs are costs that are incurred for each batch of products or services produced, and are therefore not tied to the quantity of units produced. Examples of batch-level costs include machine setup costs, quality control inspections, and production scheduling. These costs are best assigned using non-unit-based activity drivers, such as the number of batches produced, since they do not vary with the volume of production. Cost pools and departmental rates are used to allocate costs at higher levels of aggregation, such as at the department level or across multiple products. Unit-based activity drivers, such as machine hours or direct labor hours, are used to assign costs that vary with the volume of production, such as direct materials and direct labor.

Batch-Level Costs Are Assigned Using