Question

Activities incurred regardless of how many​ units, batches, or products are produced are called​ _____ activities.

A.
​facility-level
B.
​batch-level
C.
​unit-level
D.
​product-level

Answer 1

The correct answer is option a. Facility-level activities are the costs that a company incurs regardless of the number of units, batches, or products produced, like maintenance or rent.

Step-by-step explanation:

Activities that are incurred regardless of how many units, batches, or products are produced within a company are referred to as facility-level activities. These activities include things like factory maintenance, property taxes, and rent, which do not change with the volume of production.

For instance, whether a facility produces 10 units or 10,000 units, the cost of factory rent or the salary of the plant manager would stay constant.