Asked by
Danika Guirit
on Oct 15, 2024
Verified
Consider the following activities that take place in a veterinary clinic. (a) Cleaning cages.
(b) Heating and air conditioning the clinic.
(c) Sending blood work to a lab.
(d) Dispensing medicine.
Which of the following statements is true?
A) Service entities cannot use ABC for overhead allocation.
B) Cleaning cages is a facility level activity.
C) Dispensing medicine is a facility level activity.
D) Heating and air conditioning the clinic is a facility level activity.
E) Sending blood work to a lab is a facility level activity.
Facility Level Activity
Operations and processes that support the overall functioning of a facility, but are not directly tied to the production of goods or services.
Veterinary Clinic
A medical facility focused on the diagnosis, treatment, and care of animals, offering services like surgery, dental care, and preventive medicine.
Overhead Allocation
The process of spreading overhead costs across different departments or products based on a predetermined criteria.
- Discriminate between the types of activity levels, namely Unit-level, Batch-level, Product-level, and Facility-level.
Verified Answer
AJ
Learning Objectives
- Discriminate between the types of activity levels, namely Unit-level, Batch-level, Product-level, and Facility-level.