If activity-based costing is used, product inspections would be classified as a
A)unit-level activity.
B)batch-level activity.
C)product-level activity.
D)facility-level activity.

Question

Quizplus · Accepted Answer

Product inspections are typically classified as batch-level activities in activity-based costing because they are performed each time a batch of products is produced, rather than for each individual unit or continuously for the entire production process. Batch-level activities are costs incurred every time a batch is handled or processed, regardless of the number of units in the batch.

If Activity-Based Costing Is Used, Product Inspections Would Be Classified