Cost Hierarchies Homework Help for a Better Understanding of the Topic

Cost hierarchies are a part of Activity-based Costing system (ABC system). This is a very important which is classified into four different categories such as costs of batch-level, output costs, costs of product and facility sustaining. It is sometimes not possible for a cost to be assigned to a product but this system provides a framework so that it can be traced as close as possible. Cost hierarchies homework help covers all this is detail in order to make the concept clear.

What is Cost Hierarchy?

Cost Hierarchy in activity-based costing is a system which designates activities or tasks. It is basically based on of the fact that how cost can be easily traced to goods. It is activity at the unit level in the way of increasing order of difficulty in tracing. Cost hierarchies assignment help is for students from our end at who want to submit a proper homework or assignment full of important information. Below the four different categories are described in short for one to understand it.

Costs of Output

This category recognises all types of cost activities performed or implemented on a single unit of goods or service produced. For example, labour cost which generated through indirect manufacturing is cost of output. To know more about it, one can just ask us for our Cost hierarchies homework help.

Costs of Batch-Level

In this category, all activities or tasks are linked to the units of goods and services in groups and not to a particular individual unit of service or goods produced. For example, things like costs related to purchasing orders which includes expenditure of materials received and payment of suppliers are included in costs of batch-level.

Cost of Product Sustaining

Tasks or activities which are undertaken for supporting individual services or products irrespective of how many units or bach these units are made. For example, All the expenditures for a designing process, process of drawing charts and having changes done in engineering for single or individual products. More information can be gathered from Cost hierarchies assignment help.

Cost of facility Sustaining

Activities or tasks which cannot be linked to an individual product or services but helps in supporting organisation or business as whole are costs of facility sustaining. For example, things like plant rent, plant management, amount spent on insurance, etc. all fall under this overhead.

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