Which of the Following Costs Is Not Related to a Batch-Related

question 61

Multiple Choice

Which of the following costs is not related to a batch-related activity?

• A) Material handling.
• B) Machine setups.
• C) Shipping costs.
• D) Compliance costs.

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Definitions:

Lean Accounting System

An accounting practice aimed at reducing waste and improving financial control by aligning accounting processes with lean manufacturing principles.

Fewer Transactions

A situation where a business or an individual engages in a lesser number of financial exchanges or activities within a given period.

Traditional Accounting System

A method of accounting focusing on recording and reporting financial transactions based on historical costs and following generally accepted accounting principles (GAAP).

Push Manufacturing

The traditional approach to manufacturing in which products are manufactured according to a production schedule based on estimated sales; the schedule pushes product into inventory before customer orders are received.