If activity-based costing is used, electricity usage would be an example of a
A)batch-level activity.
B)unit-level activity.
C)product-level activity.
D)facility-level activity.

Question

Quizplus · Accepted Answer

Electricity usage would be an example of a unit-level activity as it is directly tied to the production of each unit and can be traced to a specific product. Batch-level activities would be activities that are performed for each group or batch of products, such as setting up a production line for a specific batch of products. Product-level activities would be activities that are necessary to support the production of a specific product, such as designing and testing a specific product. Facility-level activities would be activities that support the entire facility, such as building maintenance or security.

If Activity-Based Costing Is Used, Electricity Usage Would Be an Example