Classifying Costs into One of Four Hierarchical Levels Can Facilitate

question 39

Essay

Classifying costs into one of four hierarchical levels can facilitate the identification of relevant costs.Place an "X" in the appropriate column to classify the following costs as Unit-Level,Batch-Level,Product-Level,and Facility-Level.
$$\begin{array} { | l | c | c | c | c | } \hline { \text { Description of Cost } } & \text { Unit- } & \text { Batch- } & \text { Product- } & \text { Facility- } \\\hline & \text { Level } & \text { Level } & \text { Level } & \text { Level } \\\hline \text { Administrative costs }\\\hline \text { Assembly labor } & & & & \\\hline \text { Equipment setup costs } & & & & \\\hline \text { Engineering design } & & & & \\\hline \text { Inspection costs } & & & & \\\hline \text { Direct materials cost } & & & & \\\hline \text { Materials handling cost } & & & & \\\hline \text { Personnel administration and training } & & & & \\\hline \text { Plant manager's salary } & & & & \\\hline \text { Product manager's salary } & & & & \\\hline\end{array}$$

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Definitions:

Rewards Systems

The mechanisms or programs designed by an organization to recognize, reward, and motivate employees’ achievements and performance.

Culture Change

The modification of a society or organization's values, norms, and practices over time.

Resistance To Change

Refers to the opposition or pushback from individuals or groups when they perceive that a change occurring within an organization is a threat to them.

Formalized Rules

Established regulations and procedures designed to guide behavior and operations within an organization or institution.