Which of the following items would be classified as a batch-level cost in an activity-based cost management (ABM)system?
A) Indirect labor.
B) Production supervisor's salary.
C) Depreciation on factory building.
D) Machinery set-up costs.

Question

Quizplus · Accepted Answer

Machinery set-up costs are typically associated with batch-level activities, as they are incurred each time a new batch is produced. Indirect labor, production supervisor's salary, and depreciation on factory building are more likely to be classified as facility-level or product-level costs in an ABM system.

Which of the Following Items Would Be Classified as a Batch-Level