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Which of the Following Choice of Rows Correctly Depicts a Cost

Question 20

Multiple Choice

Which of the following choice of rows correctly depicts a cost that arises from a batch-level activity and one that arises from a facility-level activity?  Batch-Level  Facility- Level RowActivityActivity1 Direct Materials  Plant Depreciation 2 Inspection  Property Taxes 3 Quality Assurance  Shipping 4 Plant Maintenance  Insurance 5 Management Salaries  Material Handling \begin{array}{|l|l|l|}\hline &\text { Batch-Level }&\text { Facility- Level } \\\operatorname{Row} &\text {Activity}&\text {Activity}\\\hline 1& \text { Direct Materials } & \text { Plant Depreciation } \\\hline 2 &\text { Inspection } & \text { Property Taxes } \\\hline 3& \text { Quality Assurance } & \text { Shipping } \\\hline 4 &\text { Plant Maintenance } & \text { Insurance } \\\hline 5 &\text { Management Salaries } & \text { Material Handling } \\\hline\end{array}


A) 1
B) 2
C) 3
D) 4
E) 5

Correct Answer:

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