Question

Classify each of the following costs as either​ unit-level, batch-level,​ product-level, or​ facility-level. a. Engineering costs for new product Batch-level or Unit-level b Order processing Batch-level or Unit-level c. Depreciation on factory Facility-level d. Direct labor

Answer 1

Unit Level-It is referred to the cost incurred for each unit.

For Example : Direct Labour cost,Direct Material Cost

Batch- Level-It refers to the cost incurred for each batch, irrespective of number of units in each batch.

For Example: Order Processing

Product Level- It refers to the costs incurred for a particular product, irrespective of the number of units or batches of the product produced. EX: cost of research and development

Facility Level-It refers to the cost incurred irrespective of how many units, batches, or products are produced in the plant.

For example: facility upkeep

Unit Level- Direct Labour

Batch Level- Order processing

Product Level-Engineering costs for a new product

Facility Level- Depreciation on factory