Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 7 - Activity-Based Costing: A Tool to Aid Decision Making - Questions - Page 315: 7-4

Answer

Unit-level activities are activities that are performed each time a unit is produced. Batch-level activities are activities that are performed each time a batch of goods is handled or processed, regardless of how many units are in the batch. Product-level activities are activities that relate to specific products that must be carried out regardless of how many units are produced and sold or batches run. Organization-sustaining activities are activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.

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