Setup labor costs required for setting up equipment for flexible production facilities for manufacturing would be an example of:
A) Unit-level activity
B) Batch-level activity
C) Product-level activity
D) Customer-level activity

Question

Quizplus · Accepted Answer

Setup labor costs for setting up equipment for flexible production facilities are considered batch-level activities because they are incurred for each batch of products prepared for production, regardless of the number of units in the batch. These costs are not tied to the production volume of individual units (unit-level), the specific requirements of different products (product-level), or the demands of specific customers (customer-level). Batch-level activities are those that are performed each time a batch is handled or processed, regardless of the size of the batch.

Setup Labor Costs Required for Setting Up Equipment for Flexible