Product-level activities. These activities relate to specific products and must be carried out regardless of how many batches or units of product are produced or sold. For example, designing a product, advertising a product, and maintaining a product manager and staff are all product-level activities.
What is a product level activity?
A product-level activity is an action taken in support of a specific product or activity. These actions are taken irrespective of the amount of production or service volume associated with a product. Examples of product-level activities are: Cost of the product manager for a product. what is a batch level activity?
What is an example of product line activities?
Product‐line activities are those activities that support an entire product line but not necessarily each individual unit. Examples of product‐line activities are engineering changes made in the assembly line, product design changes, and warehousing and storage costs for each product line.
Which of the following is an example of a unit level activity?
The costs of direct materials, direct labor, and machine maintenance are examples of unit‐level activities. Batch‐level activities are costs incurred every time a group (batch) of units is produced or a series of steps is performed. Purchase orders, machine setup, and quality tests are examples of batch‐level activities.
What is a product-sustaining activity?
(also called product-sustaining activity or service-sustaining activity) is an activity performed to support production of a specific product or service regardless of how many batches are run or how many items are produced. Don't see the term you are looking for?
Is an example of a product level activity quizlet?
For example, activities such as designing a product, advertising a product, and maintaining a product manager and staff are all product-level activities.
Which is an example of a unit-level activity?
Unit‐level activities occur every time a service is performed or a product is made. The costs of direct materials, direct labor, and machine maintenance are examples of unit‐level activities.
What are the five levels of activity?
In more modern times, the process of activity-based costing has grown to specify the five aforementioned levels of unit-level activities, batch-level activities, customer-level activities, production-level activities, and organization-sustaining activities.
Is product design a product level activity?
The product design activity is a product-level activity. The product design cost is determinedby the number of products supported and it is not influenced by the number of batches or unitsprocessed.
What are product level activities?
A product-level activity is an action taken in support of a specific product or activity. These actions are taken irrespective of the amount of production or service volume associated with a product.
Which is not a unit-level activity?
Inspecting. Inspecting is not a unit-level activity; it is a batch-level activity.
What are the 4 levels of activity used in ABC?
Four Levels of Activity With activity-based costing, sometimes referred to as ABC, companies account for expenses by categorizing the source of the cost into one of four general groups: unit-based, batch-based, product-based, and facility-based costs.
What are customer level activities?
Customer-level activities. These activities relate to specific customers and include sales calls, catalog mailings, and general technical support not tied to any specific product.
What are the 3 types of organizational activities?
There are three main types of business activities: operating, investing, and financing.
What is level of activity in accounting?
The activity level is the amount of an activity used by a cost object. The concept is employed in activity-based costing. If the activity level can be reduced, then activity costs should decline, thereby reducing the overall expenditure level of a business.