Which of the Following Is NOT an Activity Under an ABC

question 19

Multiple Choice

Which of the following is NOT an activity under an ABC system?

• A)designing products
• B)engineering
• C)setting up equipment
• D)distributing products
• E)customers

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Definitions:

Fixed Costs

Fixed charges that stay steady irrespective of the amount of goods produced or sold, such as property leases, payroll, and indemnity costs.

Peak-period Capacity

The maximum output level that a company can sustain during the busiest period without increasing long-term fixed costs.

Machining Department

A specialized sector within a manufacturing facility where metal is cut, shaped, and finished using machine tools.

Direct Labor-hours

A measure of the total hours worked by employees who are directly involved in the production of goods or services.