Multiple Choice
Under the periodic inventory system, the value of goods added to a firm's inventory in a certain year is treated as:
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4. Merchandising Operations
Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which type of activity is performed on each individual product unit in the context of cost accounting?
A
Facility-level activity
B
Product-level activity
C
Batch-level activity
D
Unit-level activity
Verified step by step guidance1
Understand the concept of activity levels in cost accounting. Activities are categorized based on the scope of their impact: facility-level, product-level, batch-level, and unit-level activities.
Recognize that unit-level activities are performed on each individual product unit. These activities are directly tied to the production or handling of a single unit of product.
Differentiate unit-level activities from other activity levels: Facility-level activities support the entire organization, product-level activities are specific to a product line, and batch-level activities occur for a group or batch of products.
Examples of unit-level activities include direct labor, direct materials, and machine operations required for producing or processing a single unit of product.
Conclude that in the context of cost accounting, the type of activity performed on each individual product unit is classified as a unit-level activity.
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