In an Activity-Based Costing System, Materials Receiving Would Typically Be

question 50

Multiple Choice

In an activity-based costing system, materials receiving would typically be classified as a:

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

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities over a relevant period.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount contributed towards covering fixed costs and generating profit.

Performance Reports

Documents that review and assess the performance of individuals, departments, or organizations against planned objectives.

Cost Centers

Parts of an organization where costs are accumulated for internal accounting purposes but do not directly generate revenue.