Answer:
The four levels of cost hierarchy used in the ABC system are:
Unit Level Costs
Batch Level Costs
Product Level Costs
Facility Level Costs
For a company engaged in producing automobiles:
Unit level costs are those which vary with the volume of production: Electricity Costs, Metal Coating, Painting,
Batch level costs are costs which vary with the number of batches run: Machine Setup Costs, Purchase Ordering Costs, Inspection Costs
Product level costs vary with the number of product lines: Product Design Costs, Research and Development Costs, Engineering Change Costs
Facility Level Costs vary with the number of facilities: Rent Cost of the facility, Audit Costs, Depreciation of the plant and buildings.
Step-by-step explanation: