Final answer:
An example of service level activity for a hotel is laundry services for guest linens, which is a variable cost depending on hotel occupancy. Facility costs consist of static expenses such as property taxes and insurance. The complexity of cost structures varies with the type of business, such as internet companies or large factories.
Step-by-step explanation:
Service companies classify costs into different categories depending on the level of activity, including unit, batch, service, and facility. For a hotel, an example of a service level activity might be the laundry services provided for guest linens. This type of cost would fluctuate with the level of hotel occupancy and use of the laundry facilities, positioning it as a variable cost alongside utilities and housekeeping. On the other hand, facility costs for a hotel would cover the more static expenses such as property taxes, insurance, and the maintenance of permanent fixtures, which don't change significantly with the number of guests.
Businesses such as internet companies providing medical advice may exhibit high fixed costs due to initial set up and relatively low variable operating costs. However, businesses like large hospitals or factories will have complex cost structures due to their size and diversity of operations.