various activities at companhia de textils s a a manufacturin 272776

Various activities at Companhia de Textils, S.A., a manufacturing company located in Brazil, are listed below. The company makes a variety of products in its plant outside Sao Paulo.

a. Preventive maintenance is performed on general purpose production equipment.

b. Products are assembled by hand.

c. Reminder notices are sent to customers who are late in making payments.

d. Purchase orders are issued for materials to be used in production.

e. Modifications are made to product designs.

f. New employees are hired by the personnel office.

g. Machine settings are changed between batches of different products.

h. Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.)

i. Insurance costs are incurred on the company’s facilities.

Required:

1. Classify each of the activities as either unit level, batch level, product level, customer level, or organization sustaining.

2. Where possible, name one or more activity measures that could be used to assign costs generated by the activity to products or customers.

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