When ABC analysis relies on a cost hierarchy of unit-level, batch-level, product-line level, and facility-level costs, the cost management team is focusing on the customer-related costs.

Question

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ABC analysis, which relies on a cost hierarchy of unit-level, batch-level, product-line level, and facility-level costs, is focusing on the allocation of costs to products or services, not directly on customer-related costs.

When ABC Analysis Relies on a Cost Hierarchy of Unit-Level