Classifying Costs into One of Four Hierarchical Levels Can Facilitate

question 110

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:

Parasympathetic Nervous System

A division of the autonomic nervous system that promotes relaxation and functions under normal, non-stressful conditions.

Oxytocin

A hormone produced by the hypothalamus and released by the pituitary gland, known for its roles in social bonding, sexual reproduction, childbirth, and the period after childbirth.

Adrenocorticotropic Hormone

A hormone produced by the pituitary gland that stimulates the adrenal cortex to secrete glucocorticoids, involved in stress response.

Cortisol

A type of glucocorticoid that provides a natural defense against inflammation and regulates carbohydrate metabolism.