Which of the following statements is true?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff05dda16-b43e-47ff-8287-6e6911065d93%2Fc50f1645-f263-4b61-87b0-f1332963d288%2Fjy65bpg_processed.jpeg&w=3840&q=75)
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.
Expert Solution
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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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