If Activity-Based Costing Is Used, Materials Handling Would Be Classified

question 5

Multiple Choice

If activity-based costing is used, materials handling 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:

Credit Purchases

Transactions where goods or services are bought on credit, to be paid for at a later date.

Equipment

Tangible property (other than land or buildings) that is used in the operations of a business, such as machinery or computer hardware.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific parent account, facilitating more detailed financial tracking and analysis.

General Ledger

A complete record of all financial transactions over the life of a company, organized by accounts.