Question

The cost of raw materials would best be classified as what type of activity? Select one:...

The cost of raw materials would best be classified as what type of activity?

Select one:

A. A facility-level activity

B. A unit-level activity

C. A batch-level activity

D. A product-level activity

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Answer #1

Solution:

The cost of raw materials would best be classified as "A unit-level activity" because raw material cost will be incurred on every unit produced.

Hence option b is correct.

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