Which of the Four Levels of the Cost Hierarchy Would

question 39

Multiple Choice

Which of the four levels of the cost hierarchy would be used by a dress manufacturer using an activity-based management for sewing seams on a garment?

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

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Definitions:

Broccoli

A green vegetable with a large flowering head, often eaten as food.

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good, the additional satisfaction gained from each additional unit decreases.

Staples

Basic or essential goods and services that are consumed regularly by individuals or businesses.

Paper Clips

Paper clips are small pieces of bent wire or plastic used for holding sheets of paper together.