Which of the Following Would Be Classified as a Product-Level

question 188

Multiple Choice

Which of the following would be classified as a product-level activity?

• A) Setting up a machine for a batch of a standard product.
• B) Operating a cafeteria for employees.
• C) Running the Human Resource department.
• D) Advertising a product.

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Definitions:

Cost Driver

A factor that causes a change in the cost of an activity or a product, such as production volume or labor hours.

Activity-based Costing

A methodology that assigns production costs to products based on the activities required to produce them, aiming for more accurate cost allocation.

Volume-based

A pricing or costing method that changes based on the amount of goods or services produced or sold.

Non-volume-based

Refers to costing methods that allocate costs based on factors other than the volume of production, such as time or complexity.