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itshammertime itshammertime
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In an activity-based costing system, activities are classified into five categories. List and define the five categories and give one example of each type of activity.
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Managerial Accounting

Managerial Accounting


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1.Unit-level activity — performed for each individual unit of product. Each unit
consumes the same amount of resources for each unit of activity. An example is the amount of electricity used to run sewing machines used in making the product.
2.Batch-level activity — performed all at once on groups, or batches, of products. A
batch consumes the same amount of resources whether it contains 20 units or 2,000 units. The cost of moving fabric to the production floor is an example of a batch-level activity.
3.Product-level activity — those activities that support the products or services of a
company. Also referred to as product-sustaining activities. An example is creating a pattern for a new style of a company's product.
4.Customer-level activities — performed for specific customers. An example is making
a sales call.
5.Organization-level activities — required to provide productive capacity and to keep
the business in operation. These activities do not provide identifiable benefits to specific products or services. An example is managing the corporate office.

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itshammertime Author
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A month ago
This calls for a celebration Person Raising Both Hands in Celebration
jaray75
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Correct Slight Smile TY
Smair87
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2 hours ago
Good timing, thanks!
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