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Final answer:Production order processingis an example of a batch-level activity, which involves activities performed each time a batch is processed, the cost remains the same regardless of the batch size. It's closely linked to economies of scale in which, as output increases, the cost per unit decreases.Explanation:The term 'production order processing' refers to the steps involved in managing and coordinating all the components needed to complete a production order. This is considered to be a 'batch-level activity', because it deals with activities that are performed each time a batch is handled or processed, regardless of the batch's size. Examples of batch-level activities include machine setups and order processing. These activities are necessary for each batch and the cost associated with them is the same, regardless of the number of units in the batch.In the context ofeconomies of scale, a larger factory being more cost-efficient than a smaller factory, the firm can decide the optimal quantity to produce once they've determined the least costly production technology. Which in simple terms means, as the quantity of output increases, the cost per unit decreases. This is a fundamental concept observed across various industries and is one of the reasons behind the success of 'warehouse stores' like Costco or Walmart, which function on bulk purchasing and selling.Learn more about Production Order Processing here:brainly.com/question/32968869#SPJ11...