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12 July, 19:05

Classify each of the following costs as either unit-level, batch-level, product-level, or facility-level. a. Engineering costs for new product Batch-level or Unit-level b Order processing Batch-level or Unit-level c. Depreciation on factory Facility-level d. Direct labor

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  1. 12 July, 21:22
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    Unit Level-It is referred to the cost incurred for each unit.

    For Example : Direct Labour cost, Direct Material Cost

    Batch - Level-It refers to the cost incurred for each batch, irrespective of number of units in each batch.

    For Example: Order Processing

    Product Level - It refers to the costs incurred for a particular product, irrespective of the number of units or batches of the product produced. EX: cost of research and development

    Facility Level-It refers to the cost incurred irrespective of how many units, batches, or products are produced in the plant.

    For example: facility upkeep

    Unit Level - Direct Labour

    Batch Level - Order processing

    Product Level-Engineering costs for a new product

    Facility Level - Depreciation on factory
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