Final answer:
Factory depreciation and utilities are typically considered fixed costs within the cost hierarchy because they do not change with the level of production.
Step-by-step explanation:
Factory depreciation and utilities would be considered a type of cost within the cost hierarchy known as fixed costs. Fixed costs are those expenditures that do not change regardless of the level of production. They are tied to fixed inputs, such as capital, that do not change in the short run.
Factory depreciation is a fixed cost because it represents the allocation of the cost of physical assets over their useful lives and does not vary with production levels. Similarly, utilities can often be considered fixed costs, particularly if they represent basic charges that do not fluctuate with production volume. This is in contrast to variable costs, which vary directly with the level of production.