How are costs classified?


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Costs are classified in ABC Analysis into 5 categories:
(1) Unit level cost: incurred/essential for each and every unit of output/service.
(2) Batch level cost: costs related to a batch. E.g. Material inspection and handling,
production set-up.
(3) Product level cost: special mould for a particular product. E.g. Cake.
(4) Customer level cost: costs to go and meeting the customers.
(5) Facility level cost: power, depreciation for the factory building, administrative
building for those facilities that are available.


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MT UVA BMS

MT UVA- University, Vocational and Affiliated Education for BMS

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