Question

Match the Activity Level with the proper definition. a. Activities performed for each unit of production b. Activities performed for each batch of products rather than each unit. c. Activities performed in support of an entire product line, but are not always performed every time a new unit or batch of products is produced. d. Activities required to support or sustain an entire production process. e. Activities required supporting every single customer.

Answer 1

Activity-based costing involves the identification and assignment of cost to different activities in an organization. As per definitions, the correct match of these activity descriptions and their key terms would be as follows:

A). Unit-level activities - These include Activities performed for each unit of production.

B). Batch-level activities - It includes Activities performed for each batch of products rather than each unit.

C). Product-level activities - These activities include the Activities performed in support of an entire product line but are not always performed every time a new unit or batch of products is produced.

D). Facility-level activities - These are the Activities required to support or sustain an entire production process.

E). Customer Level Activities - These Activities are required for supporting every single customer.