Question

Identify and explain the four control levels associated with activity-based costing

Answer 1

First step is identifying activity in Involved in production process. For example, Machine related, labor related or supporting activity like ordering, inspection, Packing, Engineering cost, setup, Repair and maintenance etc. All these activities classified in to four categories.
Unit Level Activities	Unit level activity related with Number of unit produced or units sold etc. For example, direct material , direct labor, indirect material and consumable etc.
Batch level activities	This activities Based on number of batch produced (Means Group of unit produced). For example, ordering activities, machine setup activities, Testing of products, deliveries of products etc.
Product level activities	This activity based on Activity related to particular product etc. For example designing of product and advertising of particular product.
Facility level activities	This level of activities Cannot relate with particular product. For example Salaries of production manager, maintenance of building, depreciation of building, Promotional cost for organization, accounting costs and insurance cost, etc.