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The hierarchy of costs is the categorization of costs by activity levels.
The different levels of activity costs are:
1.) output unit-level costsCosts are the costs of activities performed on each individual unit of a product or service. 2.) Batch-level costsThese are costs of activities related to a group of units of a product or service rather than an individual unit of product or service.3.) Product-sustaining costs (Service-sustaining costs) these types of costs are for activities undertaken to support individual products or services regardless of the number of units or batches in which the units are produced4.)Facility-sustainting costscosts of activites that managers cannot trace to individual products or services but that support the organizarion as a whole.
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