Which of the following would be classified as a product-level activity?

• A. Maintaining the factory building
• B. Designing a new product model
• C. Setting up machines for a production run
• D. Ordering raw materials for each batch

Answer: (B)

Verified step by step guidance

1. Understand the concept of product-level activities: These are activities that are performed to support the production of a specific product, regardless of the number of units or batches produced. They are directly tied to the product itself.
2. Analyze each option provided in the problem: Determine whether the activity is specific to a product or if it is related to batch-level, unit-level, or facility-level activities.
3. Option 1: Maintaining the factory building - This is a facility-level activity because it supports the entire factory and is not specific to any one product.
4. Option 2: Designing a new product model - This is a product-level activity because it is directly related to the creation and development of a specific product model.
5. Option 3: Setting up machines for a production run and Option 4: Ordering raw materials for each batch - Both of these are batch-level activities because they are performed for each batch of production rather than for a specific product.