Question

Brulee Bakery produces both regular and vegan baked goods. Each quarter, the research and development department develops a recipe to convert one dairy-based product to a vegan product. The new vegan product is then tested in consumer focus groups. Under activity-based costing, the company is most likely to classify developing a new vegan recipe as a(n) ________ activity

Answer 1

Under activity-based costing, Brulee Bakery's development of a new vegan recipe is considered a batch-level activity, as it is performed once for each batch of new product line to be tested, not for each individual unit produced.

Step-by-step explanation:

Brulee Bakery's activity of developing a new vegan recipe for its product line is most likely classified as a batch-level activity under activity-based costing (ABC). Batch-level activities are tasks that are performed each time a batch of goods is handled or processed, regardless of the number of units in the batch. In the case of Brulee Bakery, the research and development department's work to develop a new vegan recipe each quarter represents a batch-level activity because it is not performed for every single product individually but for a batch of products (in this case, the new product line).

Answer 2

Answer: Product-level

Step-by-step explanation:

A product level activity is one of the type of activity that are performed for the production of the various types of products and the services and then it calculating the total number of batches of the specific items or products are get sold out in the market.

According to the given question, the Brulee bakery is basically producing the various types of vegan baked and the regular items and under the activity base costing the firm is basically developing the new vegan baked recipe.

Therefore, this type of process is basically refers as the product level activity.