The cost of inspecting and packaging each unit the company produces would be considered a facility-level activity cost.

Question

Quizplus · Accepted Answer

Inspecting and packaging each unit is a batch-level activity cost, as it occurs for each batch of units produced, rather than at the facility level. Facility-level activity costs include expenses related to maintaining the overall facility, such as rent, property taxes, and insurance.

The Cost of Inspecting and Packaging Each Unit the Company