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23 June, 12:40

The division of activities into unit-level, batch-level, product-sustaining level, and facility-level categories is commonly known as a cost:

A. object.

B. application method.

C. hierarchy.

D. estimation method.

E. classification scheme that is useful in traditional, volume-based systems.

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  1. 23 June, 13:44
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    C) hierarchy.

    Explanation:

    A unit level cost is a cost incurred every time one unit is produced, e. g. a bottle.

    A batch level cost is a cost related to a group or batch of units produced, e. g. a box containing 20 units.

    A product sustaining level cost is a cost related to the activities undertaken to support an individual type of product, e. g. software updates.

    A facility level cost is a cost incurred in order to maintain a productive facility working, e. g. lighting and cleaning costs.
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