The cost of maintaining general facilities such as buildings and grounds would best be classified as what type of activity?

The answer is Facility-level Activity

Explanation:

The options are:

a. A product-level activity

b. A unit-level activity

c. batch-level activity

d. facility-level activity

The answer is D. Facility-level activity

Facility-level activity can also be called business sustaining activity. They are conducted at the plant level and include activities that are taken to sustain, support and maintain the general operation of a business and cannot be linked to either individual units, batches or products, production cells or product lines. They include items such as building rent, cost of maintaining buildings and grounds, management of the factory, etc.

FACILITY LEVEL ACTIVITY.

Explanation: Facility level activity can be defined as any effort made to maintain the general purpose of an infrastructure. These activities usually include facilities such as grounds, building rent or depreciation, personnel administration and training, property and real estate taxes, insurance, maintenance, administrative salaries, general selling costs, etc.

These activities does not include individual products, production cells, or product lines.

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