CIMA P2 Syllabus A. Managing The Costs Of Creating Value - Activity-Based Cost Hierarchy - Notes
Activity-Based Cost Hierarchy
Unit level
Production of a single unit of product (Volume Related)
Cost Example: Direct Materials
Batch level
A group of things being made in a single production run
Cost Example: Number of Set ups
Product (or service) Sustaining level
Development, production and sale of individual product (so not volume related)
Cost Example: Product Marketing
Facility Sustaining level
Maintaining the Organisation
Cost Example: Building depreciation and maintenance
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Syllabus A. Managing The Costs Of Creating Value
Activity-Based Management
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Syllabus A. Managing The Costs Of Creating Value
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