Which of the following statements is true? In recent years, most companies have experienced increasing manufacturing overhead costs in relation to direct labor costs. Batch-level costs depend on the number of units produced in a batch. Setting up equipment is an example of a unit-level activity. Facility-level costs are caused by particular products.
Option A is true.
B) Batch-level activities
are performed each time a batch is handled or processed, regardless of how many units are in the batch. For example, tasks such as placing purchase orders, setting up equipment, and arranging for shipments to customers are batch-level activities. They are incurred once for each batch (or customer order). Costs at the batch level depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume. For example, the cost of setting up a machine for batch processing is the same regard- less of whether the batch contains one or thousands of items.
C)Setting up equipment is an example of batch level activity
D)Facility Level Activities that relate to overall production and cannot be traced to specific products; cost associated with these activities pertain to plaint’s general manufacturing process