Which of the Following Items Is a Facility-Level Activity

question 41

Multiple Choice

Which of the following items is a facility-level activity?

• A)Maintenance performed on the factory building.
• B)Purchase requisitions issued for raw materials.
• C)Direct labor assembling products.
• D)Product designed for a specific customer.
• E)None of the answer choices is correct.

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, typically a fiscal quarter or year, to calculate the net income or loss.

Direct Materials

Raw materials that can be directly attributed to the production process of a product and are clearly identified as part of the finished product.

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production process, such as maintenance, supervision, and utilities.

Operating Expenses

Costs related to the normal operations of a business, such as salaries, rent, and utilities, but excluding cost of goods sold.