Feinstein, Inc., an appliance manufacturer, is developing a new line of ovens that uses controlled-laser technology. The researc

Question

2 months ago

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Feinstein, Inc., an appliance manufacturer, is developing a new line of ovens that uses controlled-laser technology. The researc

h and testing costs associated with the new ovens is said to arise from a:
a)nit-level activity.?

b)atch-level activity.?

c)roduct-sustaining activity.?

d)acility-level activity.?

e)ompetitive-level activity.?

Business

1 answer:

Mariulka [3.8K] · Answer 1 · 2026-03-06T16:07:42+03:00

The expenses incurred for research and testing related to the new ovens are identified as a product-sustaining activity.

Explanation:

Product-sustaining activities are performed as necessary to support the production of various product types. Examples of design-sustaining activities involve defining product requirements, making technical enhancements, and executing specialized testing protocols.

These costs can be allocated to each individual product but do not vary in proportion to the number of units produced or their quantities. Activities that sustain the organization as a whole are necessary for the complete production cycle.

Administrative functions, building maintenance, and facility security are common examples of organization-sustaining activities.

Costs for operations can be assigned to products based on unit, batch, or component levels depending on the use of each commodity. Products may be randomly allocated costs or viewed as time-related expenses for organization-sustaining activities.