In an activity-based costing system, materials receiving would typically be classified as a:
A) unit-level activity.
B) batch-level activity.
C) product-sustaining activity.
D) facility-level activity.
E) period-level activity.

Question

Quizplus · Accepted Answer

Materials receiving is typically classified as a batch-level activity because it is associated with a group of units rather than each individual unit, the entire product line, or the facility as a whole. Batch-level activities are those that are performed each time a batch is handled or processed, regardless of how many units are in the batch.

In an Activity-Based Costing System, Materials Receiving Would Typically Be