Which One of the Four Levels of the Cost Hierarchy

question 119

Multiple Choice

Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management to design a pattern for a new dress style?

• A) Unit-level activity
• B) Batch-level activity
• C) Product-level activity
• D) Facility-level activity

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Definitions:

Public Good

A product or service that is non-excludable and non-rivalrous, meaning that one's use of the good does not reduce its availability to others.

Positive Externality

A benefit that is enjoyed by a third-party resulting from an economic transaction to which they were not involved.

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be consumed by multiple people without diminishing its availability to others.

Common Resource

A resource that is nonexcludable but rival in consumption.