Engineering design is an activity vital to the success of any motor vehicle manufacturer.Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of built-to-order city and county emergency vehicles (orders are usually placed for 10 to 12 identical vehicles).
A)Unit-level activity
B)Batch-level activity
C)Product-level activity
D)Facility-level activity

Question

Quizplus · Accepted Answer

Engineering design for a maker of built-to-order city and county emergency vehicles, where orders are usually placed for 10 to 12 identical vehicles, is classified as a batch-level activity. This is because the design efforts and costs are incurred for each batch of vehicles ordered, rather than for each individual unit, for the product line as a whole, or for the facility's overall operation. Batch-level activities are those that are performed each time a batch is handled or processed, regardless of the number of units in the batch.

Engineering Design Is an Activity Vital to the Success of Any