GEN COMBO MANAGERIAL ACCOUNTING FOR MANAGERS; CONNECT 1S ACCESS CARD
4th Edition
ISBN: 9781259911682
Author: Eric Noreen
Publisher: McGraw-Hill Education
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Chapter 6A, Problem 6A.1E
To determine
Concept introduction:
Activity-based costing is a method of allocation of
To indicate: The classification of each activity.
Expert Solution & Answer
Explanation of Solution
The classification of each activity is as follows:
| Activity # | Type | |
| a | Batch Level | Raw materials are used for a batch of the product; hence receiving the raw materials is a batch level activity. |
| b | Product level | Management of parts inventory is a product-level activity. |
| c | Unit level | Milling work on the product is done at the unit level. Hence, it is a unit-level activity. |
| d | Organization level | Hiring new employees is an organization level activity. |
| e | Organization level | Designing a new product is an organization level activity. |
| f | Organization level | Performing preventive maintenance of equipment is an organization level activity. |
| g | Organization level | The use of general factory building is an organization level activity. |
| h | Batch Level | Issuing purchase orders for a job is a batch level activity. |
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Chapter 6A Solutions
GEN COMBO MANAGERIAL ACCOUNTING FOR MANAGERS; CONNECT 1S ACCESS CARD
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