Question

Brulee Bakery produces both regular and vegan baked goods. Each quarter, the research and development department develops a recipe to convert one dairy-based product to a vegan product. The new vegan product is then tested in consumer focus groups. Under activity-based costing, the company is most likely to classify developing a new vegan recipe as a(n) ________ activity

Answer 1

Answer: Product-level

Explanation:

 A product level activity is one of the type of activity that are performed for the production of the various types of products and the services and then it calculating the total number of batches of the specific items or products are get sold out in the market.

According to the given question, the Brulee bakery is basically producing the various types of vegan baked and the regular items and under the activity base costing the firm is basically developing the new vegan baked recipe.

Therefore, this type of process is basically refers as the product level activity.