Asked by Austin Husmann on Jul 11, 2024

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Purchase order processing is an example of a:

A) facility-level activity.
B) batch-level activity.
C) unit-level activity.
D) product-level activity.

Purchase Order Processing

The administrative procedure of managing and executing purchase orders from requisition to payment and receipt of goods.

Facility-Level Activity

Operations and actions at the plant or facility level that are necessary for production but not tied to specific units produced.

Batch-Level Activity

Operations or tasks that are performed for each batch of goods produced, irrespective of the overall production volume.

  • Determine and allocate activities to respective cost pools and figure out their rates.
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Verified Answer

KS
Kennedy SettjeJul 12, 2024
Final Answer :
B
Explanation :
Purchase order processing is a batch-level activity because it involves processing a group of orders at once rather than on a one-by-one basis for each unit or product.