ECONOMICS

Detailed explanation-1: -Examples of product-level activities are the cost of the product manager for a product, the cost to design a product, the cost to design product packaging, the cost to issue an engineering change order, and the cost to advertise a product.

Detailed explanation-2: -Batch-level activities are costs related to the production of a batch of one product. Batch-level activities can include machine setup, quality testing, maintenance, and purchase orders.

Detailed explanation-3: -Unit-level activities occur whenever units are produced. Unit-level costs, therefore, are proportional to production volume. For example, assembly and machining. The greater the production volume, the greater the assembly and machining times.

Detailed explanation-4: -Product-sustaining activities enable the production of individual products or services. Customer-sustaining activities let an organization serve the needs of and manage an individual customer, but are independent of the volume or mix of the products and services sold to that customer.