The Division of Activities into Unit-Level, Batch-Level, Product-Sustaining Level, and Facility-Level

question 69

Multiple Choice

The division of activities into unit-level, batch-level, product-sustaining level, and facility-level categories is commonly known as a cost:

• A) object.
• B) application method.
• C) hierarchy.
• D) estimation method.
• E) classification scheme that is useful in traditional, volume-based systems.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specified rate of return.

Capital Cost Allowance (CCA)

A tax deduction that Canadian businesses can claim for the depreciation of tangible and intangible assets.

Manufacturing Equipment

Manufacturing equipment refers to the machinery and tools used in the process of producing goods or handling materials.

Labour And Materials

The costs associated with the workforce (labour) and the raw materials used in the production of goods and services.