1. Machine setup is what type of activity? a. Unit-level activity. b. Batch-level activity c. Product-level activity. d. Facility-level activity. 2. Providing legal advice to the president concerning a possible merger with another company would be considered: a. unit-level activity. b. batch-level activity. c. product-level activity. d. none of the above. 3. Writing software for a new computer game at a software company would be considered: a. unit-level activity b. batch-level activity. c. product-level activity d. activity. 4. Material handling and quality control (testing) are generally considered what level of activity? a. Unit-level activity. b. Batch-level activity c. Product-level activity. d. Facility-level activity. 5. The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools True False 6. When a company implements an activity-based costing system, manufacturing overhead cost is often shifted from low volume products to high volume products, with a higher unit cost resulting for the high volume products. True False