ECONOMICS

Detailed explanation-1: -Product-level activities relate to specific products and typically must be carried out regardless of how many batches are run or units of product are made. 4. The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools.

Detailed explanation-2: -Organization-sustaining activities. These activities are carried out regardless of which products are produced, how many batches are run, or how many units are made.

Detailed explanation-3: -Batch-level activities are costs related to the production of a batch of one product. Batch-level activities can include machine setup, quality testing, maintenance, and purchase orders. Batch-level activities are part of a five-faceted structure of activity-based costing.

Detailed explanation-4: -A unit-level cost is incurred each time a unit of product is produced and includes costs such as materials and labor. A batch-level cost is incurred every time a batch of items is manufactured, for example, costs associated with purchasing and receiving materials.