Question

Consider the following activities that take place in a medical clinic.

(a.) Cleaning exam rooms.
(b.) Heating and air conditioning the clinic.
(c.) Sending blood work to a lab.
(d.) Dispensing medicine.
Which of the following statements is true?
A. Cleaning rooms and heating the clinic are both unit level activities.
B. Sending blood work to the lab is a batch level activity.
C. Sending blood work and dispensing medicine are both batch level activities.
D. Cleaning rooms and dispensing medication are both product or service level activities.
E. Heating the clinic and dispensing medication are both batch level activities.

Answer 1

Answer: B. Sending blood work to the lab is a batch level activity.

Step-by-step explanation:

Batch level activities are those that have to do with a particular grouping/batch of products.

Sending blood work to a lab is a batch level activity because blood is sent in batches with a batch containing several blood packages. Costs related to this will therefore be classified as batch costs.