History in the Making

Individual Assignment
Cost Accounting systems and Product Costs
    Dreunna Holland
University of Phoenix
Find and define what the four levels – one of which is “batch”.
Unit-level activities are those activities that result in the transformation of resources into individual units of products or services. These activities must be performed for every unit of product.
Batch-level activities allow the organization to complete groups of product simultaneously. For instance, production of 100,000 copies of a CD by one musical group requires a common set of personnel, recording facilities, and musical equipment. Different batches require different sets of resources.
Product-level activities occur to allow production of an entire product-line. Examples of these activities include product design, marketing and advertising, and development. An easy way to think about the costs associated with these activities is to recognize that the costs would not exist if the production decision was rejected.
Facility-level activities support all of the organization I 's processes. They are the highest activity level. Costs of having top management are facility level activities. At the other end of the spectrum, janitorial and plant maintenance services are also at the facility level. This is true because both top management activities and Janitorial services serve the entire organization and cannot be traced to a customer, batch, product, or unit of product. A good way to think about facility-level activities is to recognize that they would not go away even if some activities at the lower hierarchies did go away. Facility-level activities only disappear if the activities at the entire facility are discontinued.
CVP 65 and Break Even
When you have completed your spreadsheet, answer the following questions:
      What are the break-even points in units and dollars under proposal   A?     Unit Breakeven = 2500
Dollars Breakeven = $247,500