ECONOMICS

Detailed explanation-1: -Batch-level activities can include machine setup, quality testing, maintenance, and purchase orders.

Detailed explanation-2: -Inspecting is not a unit-level activity; it is a batch-level activity. Batch-level activities are costs allocated on a batch basis. Inspecting is performed by batches, not by individual units.

Detailed explanation-3: -What Does Batch Level Costs Mean? Quality control and inspection is also considered a batch cost because it’s associated with a group of products not a specific one. In many cases, a quality control employee will randomly pick out a small percentage of units from a group to test them for quality assurance.

Detailed explanation-4: -Batch‐level activities are costs incurred every time a group (batch) of units is produced or a series of steps is performed. Purchase orders, machine setup, and quality tests are examples of batch‐level activities.