Listed below are a number of activities that you have observed at Vapo Ingman Oy, a Finnish manufacturing company. The
Listed below are a number of activities that you have observed at Vapo Ingman Oy, a Finnish manufacturing company. The company makes a variety of products at its plant outside Helsinki.
(a) Machine settings are changed between batches of different products
(b) Parts inventories are maintained in the storeroom (each product requires unique parts)
(c) Products are milled on a milling machine
(d) New employees are hired by the personnel office
(e) New products are designed
(f) Periodic maintenance is performed on general-purpose production equipment
(g) A bill is sent to a customer who is late in making payments
(h) Yearly taxes are paid on the company's facilities
(i) Purchase orders are issued for materials to be used in production.
1. Classify each of the activities above as either a unit-level, batch-level, product-level, customer-level or organization-sustaining activity.
2. Where possible, for each activity name one or more activity measures that might be used to assign costs generated by the activity to products or customers.
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