Question

Which of the following statements is true with respect to batch-level activities?

Multiple Choice
a.The cost per batch increases as the number of the units in the batch increases.
b.The cost per batch increases as the number of the units in the batch decreases.
c.The cost per batch remains the same as the number of units in the batch changes.
d.The cost per batch decreases as the total number of batches processed decreases.

Answer 1

a. The cost per batch increases as the number of the units in the batch increases.

Step-by-step explanation:

The correct statement with respect to batch-level activities is a. The cost per batch increases as the number of the units in the batch increases.

This is because as the firm produces higher quantities of output, it requires greater quantities of inputs, which cost more dollars to acquire. Therefore, the cost per batch increases.