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Management Accounting_Discussion 9

Management Accounting_Discussion 9

Q In this chapter, we looked at how there are five different levels of activity. Consider some of the activities you complete at your work and separate them into Unit-Level, Batch-Level, Product-Level, Customer-Level, or Organization-Sustaining Activities.

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Costs under the system of traditional cost are assigned based on the produced units’ number. All costs of overhead under the costing system of activity-based are categorized into five activities for the cost being assigned to products. The five activity levels in Activity-based costing are batch level, customer level, unit level, product level, and organization sustaining (Jiambalvo, 2016).