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

question 93

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)Factory-level

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Definitions:

Direct Costs

Costs that can be directly traced to the production of specific goods or services, such as raw materials and labor directly involved in manufacturing.

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Decorative or collectible items made of clay and finished with hand-applied paint details, often representing characters or scenes.

Fixed Manufacturing Cost

A type of cost that does not change with the level of production output, including costs like rent, salaries, and insurance.

Relevant Range

The span of activity within which certain cost behaviors and assumptions, such as fixed costs and variable rates, are expected to remain valid.