Unformatted text preview: in most organization.
A great deal of simplification is necessary.
One way to simplify is to group activities
into a hierarchy. Product-Level
ustomerActivity Organizationsustaining Activity Categories
Categories of activities HIERARCHY Unit-level activity: An activity that is performed for each
activity An activity that is performed for each
driven by volume unit of production (utilities for machines, labor
hours, inserting a component, etc.) Batch-level activity: An activity that is performed for each
batch of products rather than for each unit of
production (machine setup, purchase ordering,
production scheduling) Product-sustaining activity: An activity that is performed
to support the production of given product
to support the production of a given product
(product design, parts administration) engineering Organization-sustaining activity: An activity that is performed to sustain the organization (production
of products in...
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- Fall '13
- Traditional Cost Systems