Since a batch-level activity is based on the existence of the batch, a batch consumes resources
A)proportionately with the number of units in the batch.
B)inversely with the number of units in the batch.
C)that cause total overhead costs to decrease.
D)as a fixed amount whether it contains 20 units or 2,000 units.

Question

Quizplus · Accepted Answer

A batch-level activity consumes a fixed amount of resources regardless of the number of units in the batch. This is because the activity is based on the existence of the batch itself, rather than the number of units it contains. Therefore, the cost per unit decreases as the number of units in the batch increases.

Since a Batch-Level Activity Is Based on the Existence of the Batch