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

Question

Quizplus · Accepted Answer

Product-level activities are those that are performed to support a particular product or product line. Modifications made by engineering to the product design would be considered product-level activities as they are directly related to a particular product.

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