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Various activities at Companhia de Textils, S.A., a manufacturing company located in Brazil, are listed below. The company makes a variety of products in its plant outside São Paulo. Required: Classify each of the activities as either a unit-level, batch-level, product-level, or facility-level activity. Activity Classification Activity a. Preventive maintenance is performed on general-purpose production equipment. b. Products are assembled by hand. c. A security guard patrols the company grounds after normal working hours. d. Purchase orders are issued for materials to be used in production. e. Modifications are made to product designs. f. New employees are hired by the personnel office. g. Machine settings are changed between batches of different products. h. Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.) i. Insurance costs are incurred on the company's facilities.

Various activities at Companhia de Textils, S.A., a manufacturing company located in Brazil, are listed below. The company makes a variety of products in its plant outside São Paulo. Required: Classify each of the activities as either a unit-level, batch-level, product-level, or facility-level activity. Activity Classification Activity a. Preventive maintenance is performed on general-purpose production equipment. b. Products are assembled by hand. c. A security guard patrols the company grounds after normal working hours. d. Purchase orders are issued for materials to be used in production. e. Modifications are made to product designs. f. New employees are hired by the personnel office. g. Machine settings are changed between batches of different products. h. Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.) i. Insurance costs are incurred on the company's facilities.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Various activities at Companhia de Textils, S.A., a manufacturing company located in Brazil, are listed below. The company makes a variety of products in its plant outside São Paulo. Required: Classify each of the activities as either a unit-level, batch-level, product-level, or facility-level activity. Activity Classification Activity a. Preventive maintenance is performed on general-purpose production equipment. b. Products are assembled by hand. c. A security guard patrols the company grounds after normal working hours. d. Purchase orders are issued for materials to be used in production. e. Modifications are made to product designs. f. New employees are hired by the personnel office. g. Machine settings are changed between batches of different products. h. Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.) i. Insurance costs are incurred on the company's facilities.
Transcribed Image Text:Various activities at Companhia de Textils, S.A., a manufacturing company located in Brazil, are listed below. The company makes a variety of products in its plant outside São Paulo. Required: Classify each of the activities as either a unit-level, batch-level, product-level, or facility-level activity. Activity Classification Activity a. Preventive maintenance is performed on general-purpose production equipment. b. Products are assembled by hand. c. A security guard patrols the company grounds after normal working hours. d. Purchase orders are issued for materials to be used in production. e. Modifications are made to product designs. f. New employees are hired by the personnel office. g. Machine settings are changed between batches of different products. h. Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.) i. Insurance costs are incurred on the company's facilities.
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