How Costs are Treated Under Activity–Based Costing
{"Image DocumentName": "How Costs are Treated Under Activity\u2013Based Costing", "Image ImageDescription": "8-12. How Costs are Treated Under Activity\u2013Based Costing. Manufacturing companies typically combine their activities into five classifications. Unit-Level. Activity. Batch-Level. Product-Level. Customer-Level. Organization- sustaining. \uf08c Unit-level activities are performed each time a unit is produced. For example, providing power to run processing equipment would be a unit-level activity. \uf08d Batch-level activities are performed each time a batch is handled or processed, regardless of how many units are in the batch. For example, setting up equipment and shipping customer orders are batch-level activities. \uf08e Product-level activities relate to specific products and must be carried out regardless of how many batches are run or units produced and sold. For example, designing or advertising a product would be product-level activities. \uf08f Customer-level activities relate to specific customers and are not tied to any specific product. For example, sales calls and catalog mailings would be customer-level activities. \uf090 Organization-sustaining activities are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made. For example, heating a factory and cleaning executive offices are organization-sustaining activities.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}