Setting up a machine to change from producing one product to another is an example of a(n):
A)Unit-level activity.
B)Batch-level activity.
C)Product-level activity.
D)Organization-sustaining activity.

Question

Quizplus · Accepted Answer

Setting up a machine to change from producing one product to another requires a batch-level activity as it involves the cost of changing over the equipment, cleaning it, adjusting it, etc. Batch-level activities involve the cost of setting up, preparing, or testing equipment before producing a batch of products. This activity does not involve the production of a single product unit or a sustained activity that benefits the entire organization, making options A, C, and D not applicable.

Setting Up a Machine to Change from Producing One Product