Unit-level activities: The activities that are carried out at the time of the production of each unit are considered as unit-level activities. The unit-level cost should be proportional to the number of units produced. Batch-level activities: The activities that are carried out at the processing of a batch are considered as batch-level activities. These activities are carried out on the batch −level regardless of the number of units in a batch. Product-level activities: The activities that are carried out for a specific product are considered as a product-level activity. Product-level activities do not consider the batch quantity and number of units. Organization-sustaining activities: The activities that are carried out for running the organization, regardless of the customer influence and number of the batch unit, are considered as organization-sustaining activities. Provide an example of the activity measure for the given activities.

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Chapter 5, Problem 5.12E

To determine

Concept introduction:

Unit-level activities:

The activities that are carried out at the time of the production of each unit are considered as unit-level activities. The unit-level cost should be proportional to the number of units produced.

Batch-level activities:

The activities that are carried out at the processing of a batch are considered as batch-level activities. These activities are carried out on the batch −level regardless of the number of units in a batch.

Product-level activities:

The activities that are carried out for a specific product are considered as a product-level activity. Product-level activities do not consider the batch quantity and number of units.

Organization-sustaining activities:

The activities that are carried out for running the organization, regardless of the customer influence and number of the batch unit, are considered as organization-sustaining activities.

Provide an example of the activity measure for the given activities.

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