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CA Inter P4 · Chapter 5 · Question 3 of 8

Which of the following is an example of a facility-sustaining activity?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: A) Security and general management of the factory

Explanation

Facility-sustaining activities support the organisation as a whole and cannot be traced to individual units, batches or products, such as plant security, factory management and building insurance. Batch inspection is batch-level, engineering changes are product-sustaining and machine power is unit-level.

All 8 questions in Chapter 5Activity Based Costing MCQs with answers

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