Facility level activities of an organization would not include:
A) Building maintenance
B) Machine set up
C) Property taxes
D) The production supervisor's salary

Question

Quizplus · Accepted Answer

Machine set-up is typically a batch-level activity since there is normally not a set-up of equipment for each unit, but for batches of units. Building maintenance, property taxes, and supervisors' salaries are typical facility-level costs that exist because of the existence of the facility. They are the same as fixed costs in a unit-level cost estimation model.

Facility Level Activities of an Organization Would Not Include