Question

Which of the following best defines a batch-level activity?

a. An activity that is performed for a specific customer

b. An activity that is performed to support a specific product line

c. An activity that is performed for each individual unit

d. An activity that is performed for a group of units all at once

Answer 1

A batch-level activity is one that is performed for a group of units at once, like setting up machinery for an entire batch, which helps in allocating costs in production.

Step-by-step explanation:

A batch-level activity is best defined as d. An activity that is performed for a group of units all at once. These activities are performed each time a batch is processed, regardless of the size of the batch. Examples include setting up machines for a production run, or sending a single shipment for a group of orders.

The cost incurred from batch-level activities are not for individual units or for specific customers, but for the batches themselves. In cost accounting, these are important for understanding how costs relate to different levels of production.