The following procedure performed by a home oil delivery company is the best example of a unit level activity within a customer cost hierarchy:
A) Opening an account for a new customer
B) Processing monthly customer billings
C) Pumping home heating oil into a customer's oil tank
D) Purchasing a new delivery truck

Question

Quizplus · Accepted Answer

In a customer cost hierarchy, activities are classified based on units, orders, customers, and facilities. A unit-level activity is one that is performed for each unit sold. Therefore, pumping home heating oil into a customer's oil tank is a unit-level activity. Opening an account for a new customer, and processing customer billings are either customer-level or order-level activities, and purchasing a new truck is a facility level activity.

The Following Procedure Performed by a Home Oil Delivery Company