Which of the following statements is true?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 21?
QUESTION 21
Which of the following statements is true?
1. Batch-level activities are performed each time a batch of goods is
processed. The cost of a batch-level activity does not depend on the
number of units in the batch.
2. Facility-level costs cannot be traced on a cause-and-effect basis to
individual products.
Both statements are true.
Statement I is true.
Statement II is true.
Neither statement is true.
Transcribed Image Text:QUESTION 21 Which of the following statements is true? 1. Batch-level activities are performed each time a batch of goods is processed. The cost of a batch-level activity does not depend on the number of units in the batch. 2. Facility-level costs cannot be traced on a cause-and-effect basis to individual products. Both statements are true. Statement I is true. Statement II is true. Neither statement is true.
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Unit level cost is the incurred by the company on producing single unit of the company. It is traced on the cause and effect basis of individual products.

 

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