The Cost Hierarchy
Copia Electronics makes speaker systems. Its customers range from new hotels and restaurants that need specifically designed sound systems to nationwide retail outlets that order large quantities of similar products. The following activities are part of the company’s operating process:
|
New retail product |
Purchasing of |
Assembly labor |
|
design |
materials |
Assembly line setup |
|
Retail product |
Building repair |
Building security |
|
marketing |
Retail sales commissions |
Facility supervision |
|
Unique system design |
Bulk packing of |
|
|
Unique system packaging |
orders |
Classify each activity as unit level (UL), batch level (BL), product level (PL), or facility level (FL).