Final answer:
In Activity-Based Costing (ABC), materials handling is most likely classified as a batch level activity, which occurs every time a batch of goods is processed.
Step-by-step explanation:
If ABC is used, materials handling would most likely be classified as a batch level activity. Activity-Based Costing (ABC) is a costing method that identifies activities in a company and assigns the cost of each activity to all products and services according to the actual consumption by each. This method assigns more indirect costs (overhead) into direct costs compared to conventional costing models.
A batch level activity is a type of activity in ABC accounting that relates to costs incurred every time a batch of goods is handled or processed, regardless of how many units are in the batch. Materials handling can often be seen as a batch level activity because it typically occurs each time a batch of materials is moved, regardless of the quantity of material. This contrasts with unit-level activities that change directly in proportion to the number of units produced, product-level activities that are associated with costs incurred by a specific product, or facility-level activities that are organization-wide and don't change with the production volume or batches.