1. Using the cost hierarchy, the cost to set up a machine for a specific production run of 100 products is an example of which type of activity?

Unit-level

Batch-level

Product-level

Facility-level

2. The primary objective of lean operations is to

focus on creating value for the customer by eliminating waste.

provide customers with superior products and services.

make the companys processes as efficient and effective as possible.

use activity-based costing information to make decisions that increase profits while satisfying customer needs.

3. Production loss caused by downtime is an example of a(n)____________________ cost.

internal

external

prevention

appraisal