Since a Batch-Level Activity Is Based on the Existence of the Batch

question 18

Multiple Choice

Since a batch-level activity is based on the existence of the batch, a batch consumes resources

• A)proportionately with the number of units in the batch.
• B)inversely with the number of units in the batch.
• C)that cause total overhead costs to decrease.
• D)as a fixed amount whether it contains 20 units or 2,000 units.

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Definitions:

Inventory Cost Flow

The process of accounting for the costs associated with the goods throughout the stages of inventory, from raw materials to sold products.

Financial Statements

Documents that report on a company’s financial performance, position, and cash flows, giving insight into its financial health.

Assumptions

Predetermined notions or beliefs influencing the understanding or analysis of data or events.

LIFO

"Last In, First Out," an inventory valuation method where the last items put into inventory are the first ones sold.