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What cost hierarchy does Packaging and Shipping activity, Receiving and production activity, and Engineering activity fall...

What cost hierarchy does Packaging and Shipping activity, Receiving and production activity, and Engineering activity fall under?

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Answer #1

Generally cost hierarchy categories in to four Catenaries.

Unit level

Batch level

Product level

Facility level

Activity

Packaging and Shipping activity

Batch level

Packaging and Delivery Cost incurred On every group of product wise.

Receiving and production activity

Batch level

This Cost Incurred per Batch wise. Production and Inventory Control activity.

Engineering activity

Product level

This activity Support entire Product wise, such as Change in Product design, Engineering work etc.
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