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Activity-Based Costing (AB)

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1. The following is a list of activities that occur for a company that sells many different types of products. Please classify each as either unit-level (U), batch level (B), product level (P), or organization sustaining activity (O).

a. Packing labor wages

b. Materials-handling labor wages

c. Part administrators' salaries

d. Plant management salaries

e. Production scheduling staff salaries

f. Cost of serving production equipment, based on hours used

g. Property taxes of a plant site

h. Production expediters' salaries

i. Insurance for plant facility

j. Plant security

k. Production workers' training

l. Cost of electricity to run production equipment

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Solution Summary

The expert examines activity-base costing for different types of products. Unit-level, batch level, product level or organization sustaining activity is examined.

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1. The following is a list of activities that occur for a company that sells many different types of products. Please classify each as either unit-level (U), batch level (B), product level (P), or organization sustaining activity (O). ...

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Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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