Asked by Cassandra Ramirez on Jul 28, 2024
Verified
Testing a prototype of a new product is an example of a:
A) Unit-level activity.
B) Batch-level activity.
C) Product-level activity.
D) Organization-sustaining activity.
Testing Prototype
The process of experimenting with a preliminary model of a product to evaluate its performance and identify any necessary adjustments.
Product-Level Activity
Activities or tasks that are directly associated with specific products and typically vary with the number of product units produced.
- Distinguish between different classifications of operations (unit-level, batch-level, product-level, and organization-sustaining) and their impact on cost allocation.
Verified Answer
MA
Mehmet Ali VaranJul 28, 2024
Final Answer :
C
Explanation :
Testing a prototype of a new product is considered a product-level activity because it is directly related to the development and support of a specific product, rather than being associated with the production of individual units, batches of products, or the overall organization's operations.
Learning Objectives
- Distinguish between different classifications of operations (unit-level, batch-level, product-level, and organization-sustaining) and their impact on cost allocation.
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