Classifying Costs into One of Four Hierarchical Levels Can Facilitate

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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