Which of the following ordering of the levels best depicts the cost hierarchy within an ABC system?
A) batch-level, output unit-level, product-sustaining level, and facility-sustaining level
B) batch-level, output unit-level, facility-sustaining levels, product-sustaining levels
C) output unit-level, batch-level, product-sustaining level, and facility-sustaining level
D) facility-sustaining level, output unit-level, batch-level, product-sustaining level

Question

Quizplus · Accepted Answer

The cost hierarchy within an ABC system is typically arranged in the following order: output unit-level costs, batch-level costs, product-sustaining level costs, and facility-sustaining level costs. Option C is the only one in which the levels are listed in this order.

Which of the Following Ordering of the Levels Best Depicts