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ACTIVITY-BASED COSTING: TOOL TO AID DECISION-MAKING, :!!: Duration…

- - - - Unit-level activities: Performed each time a unit is produced, e.g. power should be proportional to no. of units produced
      - Batch-level activities: Performed each time a batch is handled/processed, regardless how many units are in the batch, e.g. placing purchase orders, setting up equipment, arranging for shipments
      - Product-level activities: Relate to specific products and typically must be carried out regardless of how many batches are run/units of products produced/sold, e.g. designing/advertising product, maintaining a product manager and staff
      - Customer-level activities: Relate to specific customers, e.g. sales calls, catalog mailings, & general tech support
      - Organizational-sustaining activities: Carried out regardless of which customers are served, which products are produced, how many batches are run, how many units are made, e.g. security guard, plant controller's salary, secretary's supplies