If Activity-Based Costing Is Used, Modifications Made by Engineering to the Product

question 27

Multiple Choice

If activity-based costing is used, modifications made by engineering to the product design of several products would be classified as a

• A)unit-level activity.
• B)batch-level activity.
• C)product-level activity.
• D)facility-level activity.

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Definitions:

Data Processing Functions

The series of operations on data, especially by a computer, to retrieve, transform, or classify information.

Cost Accounting

is a process of recording, classifying, analyzing, and allocating all costs associated with the production process to evaluate financial performance.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are worth more than their cost to achieve strategic goals.

Cash Flows

The total amount of money being transferred into and out of a business, which affects the company's liquidity.