An Activity That Is Performed for Each Unit of Production

question 121

Multiple Choice

An activity that is performed for each unit of production is a(n) :

• A)Product-level activity.
• B)Facility-level activity.
• C)Unit-level activity.
• D)Performance-level activity.
• E)Batch-level activity.

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Definitions:

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Pretax Income

The income that a company earns before any taxes are deducted, representing the profitability of the company before government intervention.

Break-even Point

The level of production or sales at which total costs equal total revenues, resulting in no profit or loss.