Consider the following activities that take place in a medical clinic. (a.) Cleaning exam rooms. (b.) Heating and air conditioning the clinic. (c.) Sending blood work to a lab. (d.) Dispensing medicine. Which of the following statements is true

The question is incomplete, because it lacks options, these are the options,

A. Cleaning rooms and heating the clinic are both unit level activities.

B. Sending blood work to the lab is a batch level activity.

C. Sending blood work and dispensing medicine are both batch level activities.

D. Cleaning rooms and dispensing medication are both product or service level activities.

E. Heating the clinic and dispensing medication are both batch level activities.

Answer is B.

Explanation:

Batch-level activities can be described as those actions related to a defined cluster of units.

It should be understood that the concept is mostly adopted or used in the allocation of overhead costs to production or service activities.

It should be noted that, batch-level activities are part of a five-faceted structure of activity-based costing. And activities like machine setup, quality testing, maintenance, and purchase orders are examples of batch-level activities.

In this case, the activity of sending blood work to the lab is a type of quality testing which is part of batch-level activities.

question 1: paragraph 3

question 2: paragraph 2

question 3: paragraph 1

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