In an Activity-Based Costing System,which of the Following Is Not

question 72

Multiple Choice

In an activity-based costing system,which of the following is not a category in which activities are classified?

• A)Unit-level
• B)Batch-level
• C)Product-level
• D)Delivery-level

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Definitions:

Mixed Cost

A cost consisting of both fixed and variable components, changing in total with the level of activity but remaining constant on a per unit basis only up to a certain level of activity.

Activity

A measure of actions or operations within a process, often used to allocate costs in activity-based costing.

Per Unit

A term referring to the cost, price, or quantity related to one unit of a product or service.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.