6) The four categories of activity costs in cost hierarchy are determined by the underlying factor that drives its costs.
7) Unit-level activities and costs are incurred once for every batch.
8) The cost of inspecting and packaging EACH unit the company produces would be considered a unit-level activity cost.
9) Batch-level activities and costs are incurred again each time a unit is produced.
10) Machine set-up would be considered a batch-level cost.
11) Product-level activities and costs are incurred for a particular product, regardless of the number of units or batches of the product produced.
12) The cost to research and develop, design and market new models would be considered a unit- level cost.
13) The cost to design and market new models would be considered a facility-level cost.
14) Facility-level activities and costs are incurred no matter how many units, batches, or products are produced in the plant.
15) The cost of maintenance on the entire production plant would be considered a batch-level cost.