What are the four parts of the cost hierarchy

What are the four parts of the cost hierarchy - Week 1...

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Week 1 supplemental lecture material Chapter Quiz which is 10 multiple choice questions at 3 points each with a time limit of 1 hour and 30 minutes. Please make sure you review the following before attempting the Quiz: •What is overcosting and undercosting •Product Cost Cross-Subsidization •Activity Based Costing Systems oDefine oUnique Features oCompare to Department-Costing Systems oLimitations oAllocation of Indirect Costs oService Companies and predetermined average rate •Examples of batch-level costs •Examples of output unit-level costs •Examples of facility-sustaining costs •How to set realistic selling prices •How to determine the indirect cost allocation rate •Cost Drivers If you have any questions or problems, please let me know. What are the four parts of the cost hierarchy. Briefly explain each part, and contrast this cost hierarchy to the fixed-variable dichotomy? Answer: The four parts of the cost hierarchy are output unit-level costs, batch-level costs, product (or service) sustaining costs, and facility sustaining costs. Output unit-level costs are costs of activities performed on each individual unit of a product or service. Batch-level costs are the costs of activities related to a group of units of products or services rather than to each individual unit of product or service. Product (or service) sustaining costs are the costs of activities undertaken
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What are the four parts of the cost hierarchy - Week 1...

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