Unit-level activities are
activities that are related to producing each unit
. Unit-level activities happen each time a product is made. This is unlike batch-level activities that happen every time a batch of products are produced.
What is a unit activity?
A unit-level activity is
an action that occurs whenever a unit is manufactured
. This activity is a volume-based cost driver, since the amount that occurs will vary in direct proportion to the number of units produced. Direct materials and direct labor are associated with unit-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. … Purchase orders, machine setup, and quality tests are examples of batch‐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. … Product-level activities.
Which is an example of a unit-level activity quizlet?
For example,
the assembly of cell phones
is a unit-level activity because the amount of assembly the company performs increases with each additional cell phone assembled. are performed every time a company produces another batch of a product.
What is unit-level cost?
Output unit-level costs are
the costs of activities performed on each individual unit of a product or service
. – These costs increase as the number of units produced increases.
What are two examples of a batch-level activity?
Batch-level activities can include
machine setup, quality testing, maintenance, and purchase orders
.
What is the unit of level?
A power level is a logarithmic quantity used to measure power, power density or sometimes energy, with commonly used unit
decibel (dB)
.
Which of the following is not a unit-level activity?
The correct answer is c.
Inspecting
is not a unit-level activity; it is a batch-level activity.
What are unit-level cost drivers?
Unit-level activity drivers are
factors that cause changes in cost as the number of units produced changes
. Examples of unit-level drivers include units produced, direct labor hours, and machine hours. Using only unit-level activity drivers to assign non-unit-related overhead costs can create distorted product costs.
What is the formula for calculating activity rate?
An activity-based costing rate is calculated by
assigning indirect costs to a cost pool, adding the costs included in that cost pool together, then dividing the cost pool total by the cost driver
.
What are the 4 Levels of activity 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 the customer level activity?
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.
Which of the following is an example of an organization-sustaining activity?
Organization-sustaining activities are those actions taken to maintain the operations of a business. For example, a
company must pay property taxes, utilities, and insurance
, irrespective of what it does to produce goods for sale or provide services to customers.
What type of activities are carried out regardless of which customers are served?
Organization-sustaining activities
are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.
Is present whenever products have different consumption ratios for different overhead activities?
Product diversity
is present whenever products have different consumption ratios for different overhead activities.
