Figure 4-18 Ubben Manufacturing uses an activity-based costing system.The company produces Model X and Model Y.Information relating to the two products is as follows:
The following costs are reported:

-Refer to Figure 4-18.Setups would be classified as a
A) unit-level activity.
B) batch-level activity.
C) product-level activity.
D) facility-level activity.

Question

Figure 4-18 Ubben Manufacturing uses an activity-based costing system.The company produces Model X and Model Y.Information relating to the two products is as follows:
 The following costs are reported:
 
-Refer to Figure 4-18.Setups would be classified as a
A) unit-level activity. 
B) batch-level activity. 
C) product-level activity. 
D) facility-level activity.

Quizplus · Accepted Answer

Setups involve activities that occur every time a batch of products is produced, and are therefore considered a batch-level activity.

Figure 4-18 Ubben Manufacturing Uses an Activity-Based Costing System