Setting up a machine to change from producing one product to another is an example of a:
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 is a batch-level activity as it involves the process of setting up and preparing the equipment for the production of a new batch or run of products. It is not a unit-level activity, which involves activities related to producing individual units of a product, or a product-level activity, which involves activities related to designing and developing a new product. It is also not an organization-sustaining activity, which is a general overhead cost that is incurred to support the overall functioning of the organization.

Setting Up a Machine to Change from Producing One Product