Brulee Bakery produces regular and vegan baked goods. Each time the bakery switches from goods that include dairy products to vegan goods, the mixing bowls must be cleaned and sterilized to avoid cross-contamination. Under activity-based costing, the company is most likely to classify cleaning the mixing bowls as a(n) ________ activity.

Question

05-11-2019
Business

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Brulee Bakery produces regular and vegan baked goods. Each time the bakery switches from goods that include dairy products to vegan goods, the mixing bowls must be cleaned and sterilized to avoid cross-contamination. Under activity-based costing, the company is most likely to classify cleaning the mixing bowls as a(n) ________ activity.

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Nyctalus Nyctalus · Answer 1 · 2019-11-05T06:44:45+01:00

Answer: batch level activity

Explanation: In simple words, it refers to the operational activities that are performed to make the batch of a single product. Such activities include setup, testing and maintenance etc.

In the given case, Brulee has been preparing for the vegan food and is doing the process right from the scratch so that there would be no contamination.

Hence we can conclude that they are providing the batch fro the vegan food.