Which of the following are examples of batch activities in the product cost hierarchy?
A)Product specifications and product testing.
B)Market research,customer records,and promotion.
C)Machine setups and quality inspections.
D)Energy to run machines and direct materials.

Question

Quizplus · Accepted Answer

Machine setups and quality inspections are both examples of batch activities in the product cost hierarchy, as they are performed each time a batch of products is produced.

Note: Options A, B, and D are not examples of batch activities. Product specifications and product testing are more likely to be classified as design activities, market research, customer records, and promotion as facility-sustaining activities, and energy to run machines and direct materials as unit-level activities in the product cost hierarchy.

Which of the Following Are Examples of Batch Activities in the Product