Which type of Activity Based Costing System involves the use of indirect materials or consumables?

The correct answer pertains to the Unit Level Activity Based Costing System because this category specifically accounts for costs incurred for each unit produced. In a Unit Level system, direct materials and labor are typically tracked and attributed directly to the individual units produced, which includes the consumption of indirect materials or consumables that contribute directly to the production of each unit. These could range from minor materials used in the making of a product, such as glue or paint, to other small supplies that are consumed at the unit level during manufacturing.

In contrast, other levels such as Batch Level focus on costs incurred for groups of units produced together, while Facility Level relates to costs tied to the overall facility operations and management, regardless of the volume of units made. Product Level, on the other hand, involves costs that are incurred to support a specific product line, but not necessarily tied to individual units produced. Thus, the unique relationship between Unit Level Activity Based Costing and the specific consumption of indirect materials distinctly marks it as the correct choice.