Which of the following costs are not unit activities in the product cost hierarchy?
A)Energy to run machines.
B)Direct materials.
C)Machine setups.
D)Piecework labor costs.

Question

Quizplus · Accepted Answer

Machine setups are considered batch-level activities, not unit-level activities, because they are associated with a batch of products rather than each individual unit. Unit-level activities are those that vary with the number of units produced, such as direct materials and piecework labor costs. Energy to run machines can also be considered a unit-level cost as it can vary with the volume of production.

Which of the Following Costs Are Not Unit Activities in the Product