Which of the Following Activities Would Be Classified as a Batch-Level

question 61

Multiple Choice

Which of the following activities would be classified as a batch-level activity?

• A)Setting up equipment.
• B)Designing a new product.
• C)Training employees.
• D)Milling a part required for the final product.

---

Definitions:

Contribution Margin

The selling price of a product minus the variable cost per unit, used to cover fixed costs and contribute to net profit.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a short time.

Variable Costs

Expenses which are dependent on the volume of activity within a business.

Profit-Volume Chart

A graphical representation that shows the relationship between a company's profits and its volume of sales, illustrating the break-even point and profit levels at different sales volumes.